Energy companies stand out in IPO traffic: 22 companies in the CMB queue

As IPO traffic accelerates in Turkish capital markets, the prominence of energy companies is drawing attention. While 29 companies have completed their IPO process since the beginning of the year, the number of companies entering the stock exchange is expected to reach 33 with the Capital Markets Board (CMB) granting approval to 4 more companies.

The fact that 8 of the companies that went public during this period are from the energy sector has become one of the prominent points in terms of sector diversity on Borsa Istanbul. There are also 22 energy companies among the more than 140 companies awaiting approval from the CMB. This picture places the energy sector at the top of IPO applications.

Energy is followed by the construction and real estate sector with 21 companies. This group includes Teknik Yapı, Nef, and Rönesans Altyapı AŞ, as well as 12 real estate investment trusts. It is stated that 19 companies in the food and agriculture sector and 18 companies in the finance sector are in the CMB process. Technology and tourism companies are also among those waiting in line for an IPO.

INTEREST FROM FOREIGN INVESTORS

With new companies in the energy field starting to trade on Borsa Istanbul in the recent period, the scope of the sector has expanded from production to distribution, and from renewable energy to infrastructure. With the participation of newly approved companies, the number of companies trading in the energy field on the stock exchange is expected to approach 50.

Emir Münir Sarpyener, General Manager of Tera Yatırım, which acted as the intermediary for the IPO of Şa-Ra Enerji, stated that interest in energy infrastructure companies will increase, saying, “With the participation of Şa-Ra Enerji in Borsa Istanbul, the ecosystem in energy has been truly completed. I believe that our companies operating in energy infrastructure that will come to the stock exchange will be among the favorite companies of domestic and even global investors within the next few years.”

Sarpyener stated that they observed this interest in investor meetings held in London and conveyed that foreign investors were asking about new economy companies such as data centers and technology on Borsa Istanbul. Sarpyener said, “We told them, ‘We also have companies that build the infrastructure for those companies, and new ones continue to come to the stock exchange. We have the infrastructure for these businesses.’ Foreigners are closely interested in such companies.”

While the return of the BIST Electricity Index has been recorded at 15 percent since the beginning of the year, the index's 1-year return is at 22 percent, and its 5-year return is at 803 percent. Energy companies continue to be one of the main areas followed by investors, along with the macroeconomic rebalancing process and the recovery trend in spot market prices.

News Source: 12punto