While 9 companies went public at Borsa Istanbul in the first three months of the year, ₺18 billion 391.4 million of financing was provided from 27 million 617 thousand 661 investors participating in the public offering.
While Borsa Istanbul continues to be one of the important stops for companies seeking financing, public offerings continue strongly.
While a total of 56 companies went public in 2023, ₺79.7 billion of funding was provided from 124 million investors. While approvals for the first public offering of 2024 were given to the IT and food sectors in January, book collections took place in February.
While the book building process for Pacific Hardware, the first public offering of the year, was completed on February 6-7, demand was 4.4 times higher from investors. In the public offering of other companies, Bor Seker (February 7-9) received 3.9 times the demand, Limak Dogu Anadolu Cimento (February 14-16) received 4.4 times the demand, and Oba Makarna (February 22-23) received 4.9 times the demand, Alves Kablo (22-23 February) received 5.3 times the demand, Mogan Energy (28-29 February) received 3.9 times the demand, Artemis Hali (27-28 February) received 5.8 times the demand, Odine Solutions (13-15 March) received 6.1 times the demand, while IC Enterra (27-29 March) received 4.1 times the demand.
5 out of 9 companies started trading in the star market
Of the 9 companies whose public offerings were completed in the February-March period, 5 started to be traded in the star market and 3 in the main market. The company, whose book building process was completed at the end of March, was opened to trading in the star market at the beginning of April.
While 27 million 617 thousand 661 investors applied to become partners of the company for the share distributions of the 9 companies in question, a total of ₺18 billion 391 million 415 thousand 898 was collected. The number of investors to whom the distribution was made was 26 million 969 thousand 228.
When we look at the most demanded companies, the top 3 are IC Enterra Renewable Energy with 3.7 million people, Mogan Enerji with 3.6 million people and Oba Makarna with 3.4 million people.
Investor demand increased by 353%
High investor demand for public offerings increased by 353% compared to the first quarter of 2023. While 6 million 96 thousand 228 investors applied for the public offering of 8 companies held in the January-March period of last year, this year this number increased to 27.6 million.
This interest was also reflected in supply sizes. The total supply size, which was ₺8 billion 379 million 62.8 thousand in the same period last year, increased by 119.5% this year to ₺18 billion 391 million 415 thousand 898.
While two of the companies that went public were active in the energy sector, two in the food sector, two in the manufacturing sector and the other two in the IT sector, one company was in the construction sector.
“IPO index has above-index return potential”
According to Central Registry Agency data, the number of stock market investors, which was 7 million 267 thousand 425 in January, increased to 8 million 163 thousand 342 in February and 8 million 225 thousand 125 in March.
Noting that public offerings are effective in the development of the number of investors, Marbas Securities Deputy General Manager Soner Kuru stated that the ceiling price series seen in the shares of companies are an important factor that increases investor appetite.
Stating that not having multiple participation in the offering transactions increases the number of participants, Kuru said, “Equal distribution method is another factor that affects the demand. The fact that the participants receive equal shares in low budgets keeps the interest in public offerings high.”
Kuru pointed out that investors participating in the stock market through public offering should know the company they are partnering with well and said that they can get support from both authorized institutions and brokerage firms in order to manage the process in the best way in their buying and selling transactions.
Stating that the sector separation made in the last CMB regulation will encourage companies operating in this field to go public, Kuru said, “The increasing number of public offerings increases the potential for the upward movement followed in the public offering index to continue. It is very important to provide above-index returns throughout the year. We expect this positive trend to continue for the rest of the year.”
The public offering index, which consists of the shares of companies that are offered to the public and started to be traded, completed the last trading day of the first quarter at 103 thousand 055 points. While the index provided a 29% return to its investors in the January-March period, the first quarter gain of the BIST 100 index was 22%.
Source: Trthaber / Prepared by Irem Yildiz