In Borsa Istanbul, which is the most important alternative for investors with high inflation and low TL deposit interests, 30 companies were offered to the public until the end of August this year. While the size of the public offering reached TL 12.2 billion, 56 percent of the TL 21.7 billion size of the 52 public offerings made last year was reached. In 2020, 8 companies made a public offering of 1.1 billion liras.
While Borsa Istanbul has continued to rise with the rapid movements in the banking index in recent weeks, it had a negative day yesterday, parallel to the decrease in risk appetite in global markets, with the Jackson Hole speech of Fed Chairman Powell last week. While the banking index, which rose by 16,4 percent last week, lost more than 2.3 percent during the day, BIST100 could not maintain its positive opening. Nevertheless, the BIST100 index, which managed to leave inflation behind with its 68 percent increase compared to the beginning of the year, continues to attract the attention of companies as well as investors.
In the first eight months of the year, 30 companies were offered to the public and the total public offering size was 12.2 billion liras. The biggest public offering of the year came from Kocaer Çelik with a size of 1.5 billion liras. Although the interest of domestic individual investors from time to time is not as high as 2021, intermediary institutions have completed the low demand with domestic institutional investors. Borsa İstanbul General Manager Korkmaz Ergun said, “When we compare the first half of 2022 with the first half of 2021, we completed the same level in terms of the number of public offerings and the size of the public offerings.”
Foreign interest is very limited
Although the public offerings continue rapidly, the same speed cannot continue in terms of the interest of foreign investors. In recent weeks, foreign investors have been entering the stock market, led by banking stocks. According to Central Bank data, female investors made a net purchase of $724.3 million in three weeks. However, the share of foreigners in Borsa Istanbul is still around 35 percent. The absence of foreigners both makes it difficult for large public offerings and does not show foreign interest in small public offerings. İbrahim Öztop, President of the Turkish Capital Markets Association (TSPB), said, “The reason why there is no large public offering is the absence of foreign investors. Our brokerage houses are currently required to deliver these to foreign investors in order to make large public offerings. There is little to no such interest at the moment. Big public offerings are not coming because they can’t find this interest,” he said.
Source: Dünya Gazetesi by www.dunya.com.
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