Bulls Investment General Manager Salman: "The Next 10 Years Will Be Dominated by Public Listings"

Burak Salman, the General Manager of Bulls Investment Securities, emphasizes that Initial Public Offerings (IPOs) are crucial for the growth and institutionalization of companies. He projects that the upcoming decade will favor publicly listed companies, mentioning that Borsa Istanbul offers notable advantages for these enterprises. Salman adds that, considering the current economic landscape, IPOs provide essential financing opportunities for businesses.

The Importance and Future of IPOs

Investors are closely monitoring Borsa Istanbul’s performance. Recent volatility and positive trends have enticed small investors back to the stock market. Despite a downward trend following the July 18 peak, Burak Salman evaluates both the recent fluctuations and the future of IPOs in this context.

Increase in IPOs

Salman forecasts a rise in the number of publicly listed companies, underlining the financing opportunities IPOs provide. He emphasizes the importance for family-owned businesses to institutionalize and capitalize on growth opportunities through IPOs.

Attracting Investor Attention

Selecting Good Companies

Salman highlights that carefully selected companies for IPOs will progress in growth and corporate financing. He commits to continuing to connect investors with high-caliber IPOs, owing to the successful operations and expertise of their corporate finance team. A notable example he shares is Cem Zeytin, which garnered significant attention and underwent a successful demand process.

Interest in Quality IPOs

Despite a recent decline in the number of investors, Salman remarks that interest in quality IPOs remains high. He points out that companies with strong financials are likely to succeed in the IPO process and advises investors to be selective.

Interest Rate Cuts and Economic Expectations

Salman underscores the pivotal role of the Central Bank’s expected interest rate cuts by the year-end and discusses their critical timing. He explains that policies from the Federal Reserve and global central banks will be decisive in this regard, with anticipated interest rate cuts contributing to economic growth.

Bulls Investment's Growth Strategy

Bulls Investment’s Growth Success

Founded through the acquisition of Sanko Securities in November 2023, Bulls Investment has demonstrated significant growth within a brief period. Their six-month financials show a 2.7-fold increase in assets, reaching TL 1.3 billion. Salman highlights substantial investments in branch expansion and digitalization, ensuring continued growth.

Stock Market Targets and Sector Analyses

Salman notes a roughly 35% value increase in Borsa Istanbul since the year's start, with notable contributions from the banking sector. He anticipates various sectors will gain prominence with expected interest rate cuts and projects a medium-term stock market target of around 13,000 points.

Fitch's Positive Outlook on Turkey

Turkish Economy

Salman underscores Fitch’s upgrade of Turkey’s credit rating to BB- as a positive development expected to bolster economic growth and reserve targets. He mentions that Fitch maintains a positive outlook on Turkey, foreseeing the Central Bank beginning 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 public, securing significant funding for growth and institutionalization. Typically occurring on a stock exchange, it grants the company public status, allowing investors to buy and sell shares. A primary advantage of an IPO is strengthening the company’s capital structure while improving transparency.

What Are the Advantages of Publicly Listed Companies?

Publicly listed companies enjoy numerous financial and strategic benefits. Firstly, financing becomes more accessible as an IPO raises large amounts of capital. Secondly, the company’s visibility and reputation are enhanced, creating a stronger market position. Additionally, being publicly listed improves transparency and corporate governance. Post-IPO, companies are subject to more detailed reporting and auditing, which boosts investor confidence.

Why Are IPOs Important for Investors?

IPOs offer new investment opportunities for investors, particularly in companies with growth potential, promising high returns. They also enable investors to diversify their portfolios by purchasing shares across various sectors, thereby spreading risks. Moreover, IPOs involve detailed prospectuses and public disclosure processes, enabling investors to make more informed decisions.

Most Frequently Asked

What is the role of IPOs in a company's growth?

IPOs play a crucial role in a company's growth by providing substantial funding that can be used for various purposes, such as expanding operations, investing in new projects, and promoting innovation. By offering shares to the public, a company can secure the necessary capital to realize its strategic goals. An IPO also increases a company's credibility and visibility, attracting potential partners and customers. The process of becoming publicly listed also enhances corporate governance and transparency, making the company more attractive to investors. Overall, IPOs serve as a significant catalyst for growth and institutionalization.

How does a company benefit from being publicly listed?

Being publicly listed offers a company multiple advantages. Access to capital is one of the most significant benefits, allowing the company to raise large sums of money to fund its expansion and operational needs. Increased visibility and enhanced reputation are other crucial benefits, as public companies often gain more media exposure and investor interest. Moreover, becoming publicly listed brings higher levels of transparency and accountability due to the stringent reporting and auditing requirements. This improved corporate governance can lead to greater investor confidence and long-term stability, helping the company maintain a strong market position.

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 in 2015 (certificate number G-010(324)), it offers services including Transaction Brokerage, Portfolio Brokerage, Individual Portfolio Management, Investment Advisory, Best Effort Brokerage, and Public Offering Brokerage Activities through Underwriting. Additionally, it provides Limited Custody Services alongside ancillary services like capital markets consulting, credit and lending, investment advice, wealth management, and financial planning.