Turkey stands out in IPOs

International consulting, audit, and tax firm EY (Ernst & Young) has released its Global IPO Trends report.

According to the report, companies considering an IPO this year need to focus on comprehensive preparation by taking into account factors such as inflation, interest rates, regulatory changes, economic activities, and geopolitical developments.

NEW REGIONS IN IPOS

The report shows that, with the exception of the September 2023 period in the US, IPOs have generally remained stagnant in many developed markets, but new regions that have surpassed traditional IPO power centers are emerging.

Companies planning to go public this year need to plan by taking into account numerous variables such as inflation, interest rates, regulatory changes, economic activities, geopolitical developments, the ESG agenda, and global supply chains.

COUNTRIES ON THE RISE IN IPOS

According to the EY Global IPO Trends 2023 report, when comparing 5-year average IPO activities, Turkey, Indonesia, and Malaysia are among the standout countries that have seen an increase in transaction volume and proceeds.

Compared to the average of the previous 5 years, Turkey is far ahead with a 120 percent increase in the number of IPOs and a 163 percent increase in IPO proceeds. Last year, 2.9 billion dollars in proceeds were generated from IPOs in Turkey. Among developing countries, these 3 countries were followed by India, Saudi Arabia, and Thailand.

When evaluated in terms of post-IPO secondary market performance, Turkey was also the standout market. While all companies that recently went public in Turkey achieved positive returns, Turkey was followed by the United Arab Emirates and India with 80 percent and 75 percent, respectively.

MOST TRANSACTIONS WERE IN THE "MANUFACTURING SECTOR"

In IPOs, the "manufacturing sector" was the sector with the highest number of transactions, while the consumer products sector was the only sector to see an increase in both volume and proceeds. In contrast, the technology sector continued to decline despite significant venture capital investments in generative artificial intelligence (GenAI) startups.

Furthermore, there was a significant decline in IPO volume and proceeds in the health and life sciences sector, particularly in China and the US. These sectors had seen their valuations increase due to policies during the COVID-19 period.