Gülermak/Tuncer: Our Goal is to Strengthen Our Customer Portfolio in the Transportation Sector with New Investments
Gulermak, which has made a name for itself with large-scale infrastructure and superstructure projects both domestically and internationally, is preparing to carry out one of the largest public offerings in the past year on Borsa Istanbul. Without the additional sale, the public offering is expected to reach a size of 4,037,500,000 TL, and in case of an additional sale, the total is expected to reach 4,845,000,000 TL, with demand being collected on January 8, 9, and 10. Mustafa Tuncer, a member of the Board of Directors of Gulermak, expressed their excitement in executing a public offering exceeding 4.8 billion TL after a long break on Borsa Istanbul. Tuncer also stated that they are pleased to welcome new partners by 2025, saying, “Our goal in the new year is to further strengthen our extensive range of services in the transportation sector and our widespread customer portfolio in the international arena with new investments. We believe we will walk towards this goal with stronger steps together with our public offering and new partners.”
Gulermak, which carries out multidisciplinary infrastructure and superstructure contracting projects globally, is ranked 13th worldwide in the field of ‘mass transit and rail systems’ according to Engineering News Record’s (ENR) 2022 list. The dates for collecting demand for Gulermak's public offering have been set for January 8, 9, and 10. The offering, which will collect demand at a fixed price of 125 TL per share, will be one of the largest public offerings in the past year on Borsa Istanbul.
The public offering will be executed through a consortium consisting of a total of 43 intermediary institutions led by QNB Invest, and the capital of Gulermak is set to be increased from 300 million TL to 322 million 600 thousand TL, with 22 million 600 thousand TL of nominal value in shares offered as a capital increase, along with 9 million 700 thousand TL of nominal value in shares offered as a sale of existing shares. A total of 32 million 300 thousand TL of nominal value shares are planned for sale, targeting a public offering size of 4,037,500,000 TL. In the event of an additional sale, through the sale of 6 million 460 thousand TL of nominal value shares, the total nominal value of shares offered will reach 38 million 760 thousand TL, and the public offering size is anticipated to be 4,845,000,000 TL. Following the public offering, it is estimated that the public float, including additional sales, will reach 12.01%.
"New Year, New Partners"
Mustafa Tuncer, a member of the Board of Directors of Gulermak, expressed their excitement about conducting a public offering exceeding 4.8 billion TL on Borsa Istanbul after a long break. Tuncer stated that they are pleased to welcome new partners by 2025, saying, “Our goal in the new year is to further strengthen our extensive range of services in the transportation sector and our widespread customer portfolio in the international arena with new investments. We believe we will walk towards this goal with stronger steps together with our public offering and new partners.” He also highlighted that a significant portion of the revenue from the public offering will be used to purchase machinery and equipment that will enhance Gulermak's capabilities in new projects. Tuncer added, “At the same time, we will allocate a part of our public offering revenues, which will reduce our financing costs, as working capital for our public-private partnership project.”
In the first nine months of 2024, Gulermak increased its revenue by 32% and reported a net cash position of 2.7 billion TL. Tuncer provided information about Gulermak's financial results achieved in the first nine months of 2024, stating, “We closed 2023 with a revenue of 24 billion 900 million 529 thousand 383 TL. In the first nine months of 2023, our revenue was 16 billion 33 million 130 thousand 36 TL, which increased by 32% to 21 billion 183 million 440 thousand 883 TL in the first nine months of 2024. Our gross profit, which was 2 billion 613 million 928 thousand 141 TL in 2023, reached 2 billion 706 million 527 thousand 899 TL in the first nine months of 2024.” Tuncer explained that the net profit for the first nine months of 2023 was 397 million 902 thousand 741 TL, which increased to 2 billion 666 million 468 thousand 956 TL in the first nine months of 2024. He also emphasized that as of September 30, 2024, Gulermak had a net cash position of 2 billion 698 million 346 thousand 19 TL.
67 Years of Experience
Tuncer stated that Gulermak, which started its operations in Ankara in 1958 with steel construction manufacturing and focused on the transportation sector over the last 20 years, continues to strive to elevate its position in Turkey and worldwide. He explained that the company is currently focused on large-scale and multidisciplinary construction, infrastructure, and industrial projects, with various branches and partnerships in Poland, Romania, Sweden, Switzerland, the Philippines, North Macedonia, the United Arab Emirates (UAE), and India.
“Completed 111 Projects in 10 Years”
“We offer a wide range of services in the transportation sector, including railway, metro, light rail systems, tramway, and highway projects. As of the first nine months of 2024, approximately 65% of our total revenues come from metro, light rail systems, and tramway projects, 10% from railway projects, and 25% from highway projects. Other projects, which account for approximately 0.68% of our revenues, include industrial projects such as cement, sugar, and glass factories, as well as hydroelectric and natural gas combined cycle power plants, marine, lake, and river dredging, wastewater treatment plants, and drinking water pipeline design projects. To date, we have successfully constructed over 300 kilometers of tunnels, 120 underground metro stations, more than 1500 kilometers of railway/high-speed train lines, and operated over 40 tunnel boring machines (TBM). With our experience in turnkey and EPC (Engineering Procurement and Construction) models in metro and rail systems, we have successfully completed and delivered a total of 111 projects in the last 10 years, predominantly in Turkey, Poland, Sweden, the UAE, India, and other countries. Publicly well-known projects include the Istanbul Otogar-Bağcılar Rail Public Transport System, the Istanbul Metro Golden Horn Metro (IS:METRO) Viaduct, the Tandoğan-Keçiören Metro, and the Ankara High-Speed Train Station Complex, as well as the Mecidiyeköy-Mahmutbey Metro Line Construction Works.”
Operating Worldwide
Tuncer noted that Gulermak's contracting work is fundamentally grouped under three different geographical categories. “Our projects in Poland and Sweden, which form our first group, account for approximately 49% of our revenues as of the first nine months of 2024. Revenue from this group is mainly generated from the Warsaw Metro Mory, the S7 Expressway, the S52 Highway Project, and the Krakow High-Speed Tramway Operating Project located in Poland. Our second group, which generates about 22% of our total revenues, covers our activities in Romania, North Macedonia, the Philippines, the UAE, and India. In this group, we have completed certain phases of our Pune Metro, Kanpur Metro, and Surat Metro projects in India, while the Bucharest Metro and Cluj Metro projects in Romania are ongoing. In our last project group in Turkey, the construction of projects, including the Izmir Buca Metro, is ongoing,” he stated.
Demand collection dates are set for January 8-9-10.
Ipek Hekimoğlu, Deputy General Manager of QNB Invest, expressed her happiness in facilitating Gulermak's introduction to investors under Borsa Istanbul A.Ş. Hekimoğlu stated that she believes Gulermak, which undertakes large-scale infrastructure, superstructure, and industrial projects that are well-recognized both domestically and internationally, will enhance its strength by meeting investors on Borsa Istanbul. She continued, “In the Gulermak public offering, we, as QNB Invest, will collect demand at a price of 125 TL on January 8, 9, and 10, 2025, allocating 40% of the allocation to domestic individual investors, 10% to investors with high demand, and 50% to domestic institutional investors. We invite all our investors to participate in Gulermak's public offering.”