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ISTANBUL - D-MARKET Electronic Services & Trading, commonly known as Hepsiburada (NASDAQ: HEPS), a leading Turkish e-commerce platform, has announced the issuance of bonds by its subsidiary, Hepsi Finansman A.Ş. (Hepsifinans), with a principal amount of TRY 250 million. This event marks the first tranche of a bond program approved by the Capital Markets Board, which allows Hepsifinans to issue bonds up to TRY 1,050,000,000 within a year.
The bond issuance, which was directed to domestic qualified investors, features a six-month maturity with quarterly coupon payments. The interest rate for these bonds is set at 51.50% per annum, and the principal will be repaid at the end of the term. The funds raised from the bond issuance are earmarked for the expansion of Hepsifinans's consumer finance business.
Hepsiburada, established in 2000, operates as an expansive e-commerce technology platform in Türkiye. It serves a customer base of over 66 million members and offers an array of products spanning more than 30 categories. The platform utilizes a hybrid sales model, which includes direct sales and a third-party marketplace hosting approximately 101 thousand merchants.
The company also provides a suite of services to both merchants and consumers, including last-mile delivery, advertising, on-demand grocery delivery, and payment solutions through its payment companion Hepsipay. Additionally, HepsiGlobal facilitates cross-border sales, allowing merchants in Türkiye to access international markets.
Hepsiburada has been committed to social initiatives, such as the 'Technology Empowerment for Women Entrepreneurs' program launched in 2017, which supports female entrepreneurs in Türkiye.
The press release includes forward-looking statements regarding the company's future plans and potential market conditions. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
Investors and interested parties are advised that this news is based on a press release statement and should consider the inherent risks of forward-looking statements. Hepsiburada and its representatives have not made any further comments on the future implications of this bond issuance beyond the details provided in the press release.
In other recent news, Hepsiburada, a leading e-commerce platform in Turkey, has reported significant financial growth in its second quarter of 2024. The company's order volume increased by 33% year-on-year, reaching 36.7 million, and its Gross Merchandise Volume (GMV) doubled compared to the first half of 2023. Active customers grew to 12.1 million, with Hepsiburada Premium subscribers hitting 3 million. The company expects a strong Q3, predicting GMV growth between 70% and 75% year-on-year and an EBITDA margin of approximately 2.2% of GMV.
In addition to its financial performance, Hepsiburada has recently reshuffled its Board of Directors' committees, enhancing its corporate governance and risk management practices. The company has updated the composition of its Audit, Risk, and Corporate Governance Committees, with new assignments and additional functions to its Risk Committee, which will transition to an Early Detection of Risk Committee in 2025.
Furthermore, Hepsiburada has issued TRY 350 million in asset-backed securities. The recent issue, which consists of six tranches, carries an average maturity of 84 days and an annual interest rate of 51.00%. Hepsiburada is channeling the funds to bolster its Buy Now, Pay Later (BNPL) business segment and alleviate the pressure on working capital. These are among the recent developments at Hepsiburada, indicating the company's resilience and adaptability in a challenging economic landscape.
InvestingPro Insights
As Hepsiburada (NASDAQ: HEPS) moves forward with its bond issuance to fuel the growth of its consumer finance business, investors may find additional context from InvestingPro's real-time data and tips.
Despite recent challenges, Hepsiburada has shown resilience in the market. An InvestingPro Tip highlights that the company's stock has seen a "high return over the last year," with data showing a remarkable 77.34% price total return over the past 12 months. This positive momentum aligns with the company's strategic moves, such as the recent bond issuance, to strengthen its financial position and expand its services.
Another relevant InvestingPro Tip indicates that "net income is expected to grow this year." This projection could be particularly significant in light of Hepsiburada's efforts to expand its consumer finance business through the recent bond issuance. The anticipated income growth suggests that the company's strategies, including the expansion of Hepsifinans, may be starting to bear fruit.
It's worth noting that Hepsiburada's market capitalization stands at $729.54 million, reflecting its position as a significant player in the Turkish e-commerce sector. The company's revenue for the last twelve months as of Q2 2023 was reported at $1,202.92 million, underscoring the scale of its operations and the potential impact of its financial decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 14 more InvestingPro Tips available for Hepsiburada, providing a deeper understanding of the company's financial health and market position.
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