Lila Kağıt: the Groundbreaking Turkish Tissue Paper Company, Goes Public

Lila Kağıt, a global player exporting tissue paper to over 80 countries across 5 continents with its brands Sofia, Maylo, UltraBerrak, and Nua, has successfully completed its initial public offering (IPO). The company issued shares worth a nominal value of 120 million Turkish liras, resulting in a total IPO size of 4.48 billion Turkish liras and a free float ratio of 20.34%. The IPO received 2.7 times the demand, including 1.6 times from domestic individual investors, 6.5 times from domestic institutional investors, and 3.1 times from international institutional investors.

After the allocation, 70% of the shares were distributed to domestic individual investors, 20% to domestic institutional investors, and 10% to international institutional investors.

A ceremony was held to mark the company’s first day of trading on Borsa İstanbul, attended by the CEO of Borsa İstanbul, Korkmaz Ergun, Lila Kağıt’s Chairman of the Board, Orhan Öğücü, and the company’s CEO, Alp Öğücü.

“We Will Strengthen Further with the Support of Our New Investors”

Lila Kağıt’s CEO, Alp Öğücü, highlighted the company’s solid position in the domestic market and its export of tissue and bobbin paper products to over 80 countries. He remarked, “We are confidently moving towards the future with the strong foundation of our brands in the domestic market and our widespread export network.” He also shared that the IPO attracted over 12 billion Turkish liras in demand and gained 3.5 million new shareholders. “We thank all the investors who believe in us and our company, and we are committed to growing even stronger with the support of our new investors,” he added.

As a global player, Öğücü stressed the company’s role in increasing foreign exchange earnings: “Through our intensive investment programs between 2014 and 2023, we have expanded our tissue paper production capacity from 70,000 tons to 271,000 tons, establishing ourselves as a global player in the industry. Our export markets, which initially focused on neighboring countries, have now spread across Europe, the Middle East, Africa, and North and South America, reaching 81 countries. Despite being fully reliant on imported pulp, the primary raw material for tissue paper production, we export 70% of our products, providing significant foreign exchange inflows for our country. Including Europe, Africa, and the Middle East, we are among the top 10 companies in the industry with the largest capacity.”

“Our New Production Facility Will Increase Our Capacity to 306,000 Tons”

Providing details on the new production facility, Öğücü continued, “In Erzurum, we are making one of the largest heavy industry investments in Eastern Anatolia and the Eastern Black Sea regions by establishing the first tissue paper production facility in the area. Currently, groundwork has been completed, and we have placed orders for prefabricated structures. With this new production facility, we aim to increase our capacity from 271,000 tons to 306,000 tons and create 500 new jobs, contributing to the region’s employment. Additionally, we plan to supply tissue paper to both the region and nearby markets such as Azerbaijan, Georgia, and Iraq, as well as further expanding into Turkic countries via this new facility.”

Referring to planned investments in the existing production plant in Tekirdağ’s Ergene district, Öğücü pointed out that they will continue their growth momentum through an automation- and software-supported smart warehouse investment and a capacity-boosting new converting line.

“We Are Preparing for a 50 MW Renewable Energy Investment”

Öğücü also noted the company’s renewable energy investments at the Ergene facility: “To gain a competitive advantage and reduce our carbon footprint, we are preparing to make a 50 MW renewable energy investment. With this project, we aim to source 25% of the electricity used in our production from renewable sources. We have already commissioned the first 12.5 MW of this investment with rooftop solar panels at our Ergene facility.”

Expressing his confidence in the backing of their investors, Öğücü concluded, “The trust and motivation from our investors will serve as a driving force as we move forward. As Lila Kağıt, just as we have done until now, we will continue to represent our country proudly at every point of service, with clear goals and a solid growth strategy. We have unwavering belief in our company, our team, and our stakeholders.”