Global Yatirim : Overwhelming Demand for Naturelgaz IPO 29 March 2021

We had announced that Global Investment Holdings' ("GIH") Board of Directors approved on February 5th 2021 the Initial Public Offering of Naturelgaz Sanayi ve Ticaret A.Ş. ("Naturelgaz"), a subsidiary of GIH. Naturelgaz is Turkey's leading non-pipeline natural gas distribution company with an estimated 25% market share in CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) with a total sales volume of 173.4 million cubic meters in 2020. The Company's 13 mother-stations and 9 auto-CNG stations, coupled with a state-of-the art equipment and vehicle fleet, constitute the widest network in Turkey.

We now proudly announce that Naturelgaz has successfully completed the IPO process. The IPO, priced at 8.50 TL per share, has received overwhelming investor demand, with 75.3 times domestic individual investor oversubscription (allocation: 60%), 28.8 times domestic institutional investor oversubscription (allocation: 30%), and 3.5 times international institutional investor oversubscription (allocation: 10%) with a total demand nearing 2 billion USD. Norges Bank Investment Management, out of Norway, acquired 8.3% of the total shares offered in the IPO. Based on the offer price, the total market capitalisation of Naturelgaz at the commencement of trading will be approximately 977.5 million TL.

The offering comprised from issuance of new ordinary shares and sale of existing shares. The offer size was 293,250,000 TL, including a primary offer of 127,341,951 TL. The Company issued 14,981,406 new shares, increasing the total number of shares issued from 100,018,594 to 115,000,000. In addition, GIH sold 16,146,097 existing shares and also an additional 3,136,363 shares were made available pursuant to an over-allotment option due to high demand; of which 4,267,451 was for the purpose of exchanging same number of shares held by a minority shareholder, leaving GIH with net offered shares of 15,015,009. Hence, GIH will receive gross proceeds of approximately 127,627,581 TL pursuant to the Offer (excluding fees and expenses), which will predominantly be used to pay off debt at the Holding level. Nevertheless, at the Offering all existing minority shareholders at Naturelgaz with total shares of 4,503,585 sold their shares, leaving the capital structure with no remaining privileged shares. After the IPO, GIH remains the largest individual shareholder of Naturelgaz with 70% stake, while free float stands at 30% to trade on Borsa İstanbul.

Naturelgaz will receive net proceeds of approximately 127,341,951 TL which will be used to develop and expand the its business. The Company, while improving its leadership position in Turkey, also envisages expanding its operations to Sub-Saharan countries where lack of pipeline infrastructure is an opportunity to transport natural gas to power and industrial plants.

Subject to certain customary exceptions, a lock up period will be in place for the Company, GIH (for a period of 180 days from Admission) prohibiting the further sale of Shares.

Mehmet Kutman, Chairman of Naturelgaz and Global Investment Holdings' Chairman & CEO, stated that: "Today's announcement is a major milestone for Naturelgaz and I would like to welcome our new shareholders who share our exciting vision. I would like to extend my sincere gratitude to all my colleagues who worked very hard to make this exceptionally successful transaction happen under the prevailing and challenging market conditions. We look forward with confidence to the next stage of our development as a listed company."

Hasan Tahsin Turan, CEO of Naturelgaz, said: "We are very pleased with the strong interest in our offer, and we would like to thank our investors for supporting us during this exciting time for our business. We are proud of our unique business model and ambitious plans for the future, which will create value for all our stakeholders. We look forward to delivering on our strategy and continuing to explore new growth opportunities."