‘IPO’ warning to investors by CMB president Gönül

The Chairman of the Capital Markets Board, İbrahim Ömer Gönül, made evaluations on the public offers.

Speaking to Firat Kozok and Tugce Ozsoy of the US financial agency Bloomberg, Gönül said that they have about 100 IPO applications on their desks, but they do not expect all of them to be approved.

Gönül said: “It may not always be a good idea to complete public offerings too quickly. “It is important to observe the state of the market, the situation and whether there will be enough demand to complete the quotes,” he said.

So far this year, 47 companies have completed their public offerings on the Istanbul Stock Exchange, raising a total of approximately 66 billion lira, or $2.9 billion at the average exchange rate. Gönül stated that they could complete the year 2023 with around 50 public offers.

‘INCREASES IN INTEREST RATES MAY CAUSE A SLOWDOWN’

Gönül said: “Increasing demand for stocks is important, but we don’t want these investors to enter the stock market as if they were gambling. Many investors target only publicly traded stocks, thinking they will always make big profits. “But sustained profits can never be guaranteed,” he said.

Gönül stated that it is more appropriate for citizens who want state-guaranteed returns to buy bonds.

Finally, Gönül stated that “if stock market outflows occur due to rising deposit interest rates, this may cause a slowdown in new listings,” adding that he does not expect this to happen.