Turkey’s largest car-fleet rental company, Ekim Turizm Sanayi & Ticaret AS, aims at investing 750 million euro ($946 million) in the following four years to triple the number of vehicles.
This plan will boost the fleet from 26, 000 to 80,000 units, 30,000 to be reached by the end of this year. The unit is also known as Intercity Rent-a-Car, and it plans to sell shares through an initial public offering in 2013 only if market conditions are favorable.
“We may delay the IPO plan a little further if the conditions are not good,” said Vural Ak, the founder and majority owner of the Istanbul-based company.
Vural Ak owns 53% of the company, Mitsubishi Corp 36% and Mitsubishi UFJ Lease & Finance Co. Ltd. 11%. Besides the plan to increase production, the company, which controls 25% of the Turkish market for car-fleet rentals, also plans to increase sales 10% in 2012 to 250 million euro.
The company has a “big growth potential because of the low fleet-rental penetration in the Turkish market. Nearly 23 percent of Turkey’s total cars belong to companies or institutions, and that shows the potential,” Ak said.