Initial public offerings hit a record in 2023

In 2023, both investors and companies managed to generate returns through initial public offerings (IPOs). In a year where companies turned to capital markets rather than using credit and an IPO took place almost every month, a total of 54 companies went public, raising 79.3 billion TL and approximately 3.3 billion dollars in financing through these offerings.

According to the report by Mustafa Emircan Yaman from Ekonomim, among the companies that went public in 2023, 46 provided positive nominal returns, while 8 caused losses for their investors as of year-end. Of these stocks, 36 managed to provide investors with real returns above the headline inflation rate for the period. The companies that went public in 2023 consisted of 16 in manufacturing, 9 in real estate investment trusts, 8 in energy, 4 in technology, 3 in finance, 2 in mining, 2 in agriculture, and 10 in other sectors.

DECLINE IN IPO RETURNS

Following the tightening of the monetary environment due to the policies of the Central Bank of the Republic of Turkey and the stagnation of the stock market under the influence of geopolitical tensions, there have been declines in IPO returns compared to the past. Stocks that would hit the daily price ceiling for at least a few days after being offered in the summer months began to break their ceiling on the second day or settle at the floor level on the first day after deposits began to become an alternative to the stock market.

Among these IPOs that took place in the last quarter of the year, the stagnation in the performance of those held in December was particularly notable. According to 2023 data, 5 out of the 7 IPOs conducted in December caused losses for their investors, despite receiving at least several times the demand during the IPO process. Of the two IPOs that managed to provide positive returns in that month, only Kuzey Boru shares were able to exceed the monthly inflation rate with a return of 16.29 percent. Meanwhile, Şeker Yatırım Menkul Değerler shares, which were also offered in the same month, provided a return of 1.14 percent during the month, performing below the monthly inflation rate of 2.93 percent in December.