Burak Salman, General Manager of Bulls Investment Securities, accentuates the pivotal role IPOs (Initial Public Offerings) play in the growth and institutionalization of companies. He asserts that the next decade will be dominated by publicly listed firms, particularly boosted by Borsa Istanbul's advantages. Salman emphasized that in today's economic environment, IPOs offer a vital financial lifeline for companies.

The Importance and Future of IPOs

Investors are keenly observing the performance of Borsa Istanbul. Despite recent market fluctuations, the positive trends have lured small investors back into the stock market, even after a downtrend post the July 18 peak. Burak Salman provided insights into the recent volatility and the future trajectory of IPOs.

Increase in IPOs

There are several key factors contributing to the rise in IPOs:

Financing Opportunities: Salman predicts an increase in publicly listed companies, noting that IPOs provide essential financing opportunities. Family-owned businesses are increasingly recognizing the necessity to institutionalize and are leveraging IPOs for growth.

Investor Attraction: Emphasizing the meticulous selection of companies for IPOs, Salman indicated that their curated portfolio is poised for substantial growth and corporate financing. He highlighted the successful debut of Cem Zeytin, which garnered significant investor interest and enjoyed robust demand.

Attracting Investor Attention

A major focus for Bulls Investment is drawing investors towards high-quality IPOs. This strategy has been a consistent part of their approach.

Selecting Good Companies

The key strategies for selecting robust companies for IPOs include:

Quality Selections: Salman underlined that the companies chosen for IPOs are set for growth and financial success. He reassured investors of the expertise of their corporate finance team, citing the successful example of Cem Zeytin.

Sustained Interest: Even with a recent decline in investor numbers, Salman maintained that there’s still strong interest in quality IPOs. He noted that firms with solid financials tend to perform well in the IPO process and advised investors to be discerning.

Interest Rate Cuts and Economic Expectations

Salman discussed the anticipated interest rate cuts by the Central Bank before year-end. He highlighted the significant role of policies from the Federal Reserve and global central banks. Salman believes that imminent interest rate cuts will substantially boost economic growth.

Bulls Investment's Growth Strategy

Bulls Investment’s Growth Success

Key points of Bulls Investment’s growth include:

Impressive Growth: Established in November 2023 through the acquisition of Sanko Securities, Bulls Investment has shown rapid expansion. In just six months, they increased their assets by 2.7 times to TL 1.3 billion. Salman stressed their significant investments in branch expansion and digitalization, and asserted that this growth trajectory will continue.

Stock Market Projections: With Borsa Istanbul appreciating approximately 35% year-to-date, mainly driven by the banking sector, Salman predicted that various sectors would gain prominence following interest rate cuts. He set a medium-term target for the stock market at around 13,000 points.

Fitch's Positive Outlook on Turkey

Turkish Economy

The positive assessment of Turkey’s economy by Fitch includes:

Credit Rating: Salman highlighted Fitch’s upgrade of Turkey’s credit rating to BB-, noting its positive impact on economic growth and reserve targets. He also mentioned Fitch's positive outlook on Turkey and expected interest rate cuts by the Central Bank by 2025.

Most Frequently Asked

What are the key advantages of Initial Public Offerings (IPOs)?

IPOs offer several critical advantages for companies. They provide essential capital, facilitating growth and expansion. Publicly listed companies gain higher visibility and credibility, which can attract new customers and investors. Additionally, the transparency required from being public can improve corporate governance and operational efficiency. For investors, IPOs present opportunities to invest in companies with high growth potential early on. Ultimately, IPOs can be a strategic milestone for a company, acting as a catalyst for further development and offering financial stability.

How does Borsa Istanbul support publicly listed companies?

Borsa Istanbul offers a robust platform for companies to go public and gain access to substantial capital. With its structured market environment, it ensures regulatory compliance and enhances the credibility of listed firms. The supportive ecosystem of Borsa Istanbul attracts a variety of investors, promoting liquidity and enabling easier capital raising. For investors, it offers a transparent and regulated space to trade shares, fostering trust. Companies listed here often benefit from strategic insights and growth opportunities, making Borsa Istanbul a pivotal player in the expansion and institutionalization of businesses in Turkey.

About Bulls Investment

Bulls Investment Securities Inc. operates under the Capital Markets Law, delivering a range of investment services. Licensed since 2015, Bulls Investment offers transaction brokerage, portfolio management, investment advisory, and public offering brokerage activities. Their ancillary services encompass capital markets consulting, financial planning, and wealth management.