Türkiye among top 10 in global IPO ranking: EY

ISTANBUL

Türkiye ranked 10th in the world in terms of public offerings (IPO) launched, according to a recent report by Ernst & Young (EY).

A total of 52 IPOs were launched, corresponding to 4 percent of global public offerings, EY’s Global IPO Trends 2023 report said.

The proceeds from the Turkish public offerings amounted to $2.9 billion, which accounts for 2 percent of global IPOs.

Türkiye showed increases in deal volume and proceeds by benchmarking against five-year average IPO activity, the report said.

“Türkiye's IPO market is taking off, as companies with limited options for fresh financing seek to take advantage of retail investors' appetite for new issues.”

According to the report, 100 percent of newly public companies in Türkiye enjoyed positive returns, with the United Arab Emirates and India not far behind, at 80 percent and 75 percent, respectively.

“These results have made them some of EMEIA’s [Europe, Middle East, India and Africa] best-performing IPO markets.”

The IPOs are luring more and more investors to Türkiye’s stock exchange.

The number of investors in Borsa Istanbul increased by 5.7 percent from a month and leaped more than 144 percent year-on-year to exceed 8.6 million as of Dec. 13, the Central Securities Depository (MKM) announced on Dec. 14.

The absence of alternative investment products and constraints on buying big-ticket tangible assets have positioned stocks as an attractive and "affordable" inflation hedge for a broad audience, Bank of America commented in the report released earlier this month.

Global IPOs declined

The global IPO market landscape shifted in 2023, with improved Western market sentiment counterbalanced by China’s cool-down, as well as a contrast between hot emerging market small-cap deals and lackluster large offerings, the EY report said.

In 2023, global IPO volumes fell 8 percent, with proceeds down by 33 percent compared with 2022, it added.

The global IPO market ended 2023 with 1,298 IPOs raising $123.2 billion.

“When comparing to 2022, IPO proceeds lagged last year’s tepid pace by roughly a third, although deal volumes have picked up in both the Americas and EMEIA.”

India National and Bombay ranked first with 220 IPOs, followed by China’s Shenzhen at 129. The U.S.’ Nasdaq came third with 105 public offerings.

In 2024, Globally, moderating inflation and potential 2024 interest rate cuts could attract investors back to IPOs by improving liquidity and return outlooks, the report said.