Istanbul Stock Market: Turkey enters top 10 in initial public offerings
As the stock market continues to rise, Turkey is also making a mark in initial public offerings (IPOs). Borsa Istanbul, which saw $2 billion worth of IPOs this year, has surpassed the London, Frankfurt, and Milan stock exchanges, securing a place in the top 10.
Turkey has outperformed many countries this year in terms of IPOs. According to the Financial Times, Borsa Istanbul has taken the lead in the IPO race, leaving behind much larger exchanges like London in the UK, Frankfurt in Germany, and Milan in Italy.
Within Borsa Istanbul, 30 companies have gone public this year, raising a total of $1.9 billion in capital. This surge in IPOs has propelled Turkey to the 9th position globally. In the top three spots for IPOs are China, the United States, and the United Arab Emirates. Among European countries, only Romania stands ahead of Turkey in the top 10.
FOURFOLD INCREASE IN STOCK INVESTORS
The number of stock investors in Turkey has quadrupled since the beginning of 2019, reaching an increase of 5.1 million individuals. The proportion of individual investors in the stock market has risen to 38 percent.
318% INCREASE IN THE STOCK MARKET
Following the influx of investors, the BIST 100 index on the Borsa Istanbul has risen by 318% since the beginning of 2002. The market’s upward trajectory has encouraged more companies to enter the stock exchange. The BIST IPO Index, which tracks companies that have gone public in the past two years, has increased by over 550% since the beginning of 2022.
There are concerns that the current market enthusiasm might attract low-quality companies to the capital markets. Some experts worry that certain IPOs could lead to publicly traded companies with inadequate research coverage and investor relations from banks and brokerage firms.
