Bourse hungry for public offerings in Turkey

ISTANBUL - Anatolia News Agency

“A firm listed on the İMKB is seen by all investors because it is a global investment environment,” İbrahim Turhan says. AA photo

The Istanbul Stock Exchange (İMKB) has provided firms with $52 billion in capital through initial public offerings (IPO), while investors have so far received about $50.5 billion in dividend payments, İMKB Head İbrahim Turhan said yesterday.

“We have a long way to go,” he said, speaking at a human resources summit organized by the human resources firm Globalcv.

Only 86 of the 500 largest firms in Turkey are listed on the İMKB, with the figure rising to 127 when looking at the list of 1,000 largest firms, according to Turhan. This data shows the potential for expansion in initial public offerings in Turkey.

Capital markets are the best places to find suitable financing, Turhan said, adding that it was a model which included the potential to solve problems in both distribution and production.

“Capital markets in Turkey have not developed until this time due to high inflation rates, high real interest rates and economic instability. But the prospects for [local] capital markets are fine in the upcoming period,” Turhan said. “The last decade was a great success story for the banking industry in Turkey,” he said, adding that the ratio of banking assets to national income had increased to 100 percent. It is now the capital markets’ turn to offer the same performance, he said.

Public offerings provide firms both publicity and funds with no collateral. “A firm listed on the İMKB is seen by all investors because it is a global investment environment,” Turhan said.

Another advantage of public offerings is that they can help institutionalize firms, paving the way for future globalization, which enhances their credibility, he added.

Turhan also said it was not enough for firms and their suppliers to be strong and healthy in terms of balance sheet figures.

Corporate governance

“Adjusting to corporate governance principles, being sensitive to the environment and taking place in social responsibility projects are all important factors,” he said.

The contribution of developing and emerging countries to global output has surpassed that of developed economies, and this important fact should guide planning in the upcoming period, he added.
Meanwhile, Fransız Aeroports de Paris, a French airport operator, made an investment in Turkish airport operator TAV due to its human resources management and information capital, said Sani Şener, the local airport operator’s chief executive during his speech at the human resources summit.