Turkey's Palmet hopes to raise $100 mln by floating 20 pct stake

Reuters

* Turkey's Palmet could raise at least $100 mln in IPO

* Plans for expansion in future

ISTANBUL, Oct 1 (Reuters) - Turkish energy company Palmetplans to float a stake of about 20 percent in an initial publicoffering (IPO) next year to raise money to expand its business,Chairman Doganay Samuray said.

Istanbul-based Palmet, which distributes natural gas andproduces electricity, hopes to earn $100 million or more fromthe IPO, Samuray told Reuters in an interview late on Monday.Garanti Yatirim, a subsidiary of Garanti Bank, andBGC Partners will advise Palmet.

"We will begin work on the public offering at the start of2014. We will carry it out if Turkish and global marketconditions are appropriate," Samuray said.

Palmet plans to spend the money on building a 283-megawatthydroelectric dam project and expanding capacity at an existinggas-powered plant, Samuray said.

Palmet targets an installed capacity of 683 megawatts by2018 from a current 130 megawatts. Palmet expects earningsbefore before interest, taxes, depreciation and amortisation(EBITDA) of $40 million by year-end, Samuray also said.

Capital outflows from emerging markets in recent months,sparked by fears the United States was tapering stimulusmeasures, prompted some Turkish companies to cancel or delayIPOs. Seven IPOS so far this year raised $676.6 million,compared with $2.8 billion in 2012.

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