Bulls Investment General Manager Burak Salman: "The Next 10 Years Will Belong to Publicly Listed Companies"
Burak Salman, General Manager of Bulls Investment Securities, emphasizes the importance of Initial Public Offerings (IPOs) for the growth and institutionalization of companies. He underscores that the next decade will favor publicly listed firms, explaining that Borsa Istanbul offers significant advantages for these companies. Salman also notes that, given the current economic climate, IPOs provide businesses with substantial financing opportunities.
The Importance and Future of IPOs
Investors are keenly observing Borsa Istanbul’s performance. Recent volatility and positive trends have attracted small investors back to the stock market. Although the market experienced a downtrend post-July 18 peak, Burak Salman assesses both the recent fluctuations and the future of IPOs in this context.
Increase in IPOs
Salman predicts a rise in the number of publicly listed companies soon, highlighting the financing opportunities IPOs provide. He stresses the necessity for family-owned enterprises to institutionalize and seize growth opportunities through IPOs.
Attracting Investor Attention
Selecting Good Companies
Salman mentions that carefully chosen companies for IPOs will progress in growth and corporate financing. He assures continuing to connect investors with high-quality IPOs, attributing this to the successful operations and expertise of their corporate finance team. He shares the example of Cem Zeytin, which attracted significant attention and underwent a successful demand process.
Interest in Quality IPOs
Despite a recent decline in the number of investors, Salman notes that interest in quality IPOs remains high. He emphasizes that companies with strong financials tend to succeed in the IPO process and advises investors to be selective.
Interest Rate Cuts and Economic Expectations
Salman highlights the significant role of the Central Bank’s expected interest rate cuts by the year-end, emphasizing the critical timing of these cuts. He states that the policies of the Federal Reserve and global central banks will be decisive in this regard, and anticipated interest rate cuts will contribute to economic growth.
Bulls Investment's Growth Strategy
Bulls Investment’s Growth Success
Founded in November 2023 through the acquisition of Sanko Securities, Bulls Investment showed significant growth in a short time. Their six-month financials indicate a 2.7-fold increase in assets, reaching TL 1.3 billion. Salman underscores substantial investments in branch expansion and digitalization, asserting continued growth in this direction.
Stock Market Targets and Sector Analyses
Salman notes Borsa Istanbul’s approximately 35% value increase since the beginning of the year, with the banking sector contributing significantly. He predicts various sectors will come to the forefront with anticipated interest rate cuts and estimates the medium-term stock market target to be around 13,000 points.
Fitch's Positive Outlook on Turkey
Turkish Economy
Salman emphasizes the positive impact of Fitch’s upgrade of Turkey’s credit rating to BB-, which is expected to bolster economic growth and reserve targets. He mentions that Fitch maintains a positive outlook on Turkey, anticipating the Central Bank to begin interest rate cuts by 2025.
Frequently Asked Questions About IPOs
What is an IPO and How Does It Work?
An IPO is a process where a company’s shares are sold to the general public. This process secures significant funding for growth and institutionalization and usually occurs on a stock exchange, granting the company public status. This means investors can buy and sell the company's shares. One primary advantage of an IPO is that it strengthens the company's capital structure and enhances its transparency.
What Are the Advantages of Publicly Listed Companies?
Publicly listed companies enjoy multiple financial and strategic benefits. First, financing becomes more accessible as an IPO raises large capital amounts. Second, the company's visibility and reputation improve, forming a stronger market position. Moreover, becoming publicly listed enhances transparency, boosting corporate governance. Post-IPO, companies undergo more detailed reporting and auditing, increasing investor confidence.
Why Are IPOs Important for Investors?
IPOs provide new investment opportunities for investors, especially in companies with growth potential, offering high returns. They also enable investors to diversify their portfolios by purchasing shares from various sectors, thus spreading risks. Additionally, IPOs involve detailed prospectuses and public disclosure processes, allowing investors to make more informed decisions.
Most Frequently Asked
What is the significance of IPOs for companies?
IPOs, or Initial Public Offerings, are a crucial step for companies seeking significant funding for growth and institutionalization. By launching an IPO, a company goes public, allowing its shares to be traded openly on a stock exchange. This process boosts the company's capital and enhances transparency, making it more attractive to investors. Furthermore, an IPO improves the company's visibility and reputation, aiding in establishing a stronger market position. Public companies also benefit from stricter reporting and auditing processes, which enhance corporate governance and increase investor confidence.
About Bulls Investment
Bulls Investment Securities Inc. ("Bulls Investment") operates in investment services and activities, adhering to the Capital Markets Law and related legislation. Authorized on 03.09.2015 (certificate number G-010(324)), it provides services including Transaction Brokerage, Portfolio Brokerage, Individual Portfolio Management, Investment Advisory, Best Effort Brokerage, and Public Offering Brokerage Activities through Underwriting. It also offers Limited Custody Services and ancillary services like capital markets consulting, granting credit and lending, general investment advice, wealth management, and financial planning.