Burak Salman: "Publicly Listed Companies Will Leave Their Mark on the Next 10 Years"

Burak Salman, the General Manager of Bulls Investment Securities, stresses the significance of Initial Public Offerings (IPOs) for the development and institutionalization of companies. He envisions the upcoming decade as being particularly favorable for publicly listed firms and notes that Borsa Istanbul provides notable benefits for these companies. Given the current economic scenario, Salman highlights that IPOs offer essential financing opportunities for businesses.

The Importance and Future of IPOs

Investors are closely watching Borsa Istanbul's performance. Recent market trends have brought small investors back to the stock market. Despite a dip following the July 18 peak, Burak Salman evaluates both the market's fluctuations and the promising future of IPOs in this setting.

Increase in IPOs

Salman anticipates a surge in the number of publicly listed companies soon, citing the financing opportunities that IPOs bring. He emphasizes that family-owned businesses should focus on institutionalizing to capitalize on growth opportunities through IPOs.

Attracting Investor Attention

Selecting Good Companies

Salman points out that strategically selected companies for IPOs will see growth and corporate financing. He highlights continued efforts to connect investors with high-quality IPOs, crediting this to the expertise of their corporate finance team. An example shared is that of Cem Zeytin, which attracted substantial attention and went through a successful demand process.

Interest in Quality IPOs

Despite a recent reduction in the number of investors, Salman notes that interest in quality IPOs remains high. He indicates that companies with robust financials succeed more in the IPO process and advises investors to be discerning.

Interest Rate Cuts and Economic Expectations

Salman stresses the importance of the Central Bank’s anticipated interest rate cuts by the end of the year, noting their critical timing. He believes that the monetary policies of the Federal Reserve and other global central banks will be decisive in this regard, with expected interest rate cuts stimulating economic growth.

Bulls Investment's Growth Strategy

Bulls Investment’s Growth Success

Founded in November 2023 following the acquisition of Sanko Securities, Bulls Investment has shown remarkable growth in a short span. Six-month financials show a 2.7-fold increase in assets, reaching TL 1.3 billion. Salman highlights significant investments in expanding branches and digitalizing operations as part of their ongoing growth strategy.

Stock Market Targets and Sector Analyses

Salman remarks on Borsa Istanbul’s approximate 35% value increase from the start of the year, with significant contribution from the banking sector. He foresees certain sectors gaining prominence with the expected interest rate cuts and sets the medium-term stock market target at around 13,000 points.

Fitch's Positive Outlook on Turkey

Turkish Economy

Salman underscores Fitch's upgraded credit rating for Turkey to BB-, which is projected to support economic growth and reserve targets. The positive outlook includes expectations for the Central Bank to initiate interest rate cuts by 2025, enhancing overall economic stability.

Frequently Asked Questions About IPOs

What is an IPO and How Does It Work?

An IPO is a process where a company offers its shares to the public. This not only secures essential funding for growth and institutionalization but also elevates the company to public status, allowing investors to trade its shares. A primary benefit of an IPO is that it strengthens the company’s capital structure and bolsters its transparency.

What Are the Advantages of Publicly Listed Companies?

Publicly listed companies enjoy numerous financial and strategic benefits. First, obtaining funds becomes more accessible as IPOs raise substantial capital. Second, the company’s visibility and reputation improve, enhancing its market position. Additionally, post-IPO, companies are subjected to more rigorous reporting and auditing standards, increasing investor confidence through greater transparency.

Why Are IPOs Important for Investors?

IPOs present new investment opportunities, particularly in high-growth potential companies, offering substantial returns. They also enable investors to diversify their portfolios by investing across various sectors, mitigating risks. With detailed prospectuses and public disclosures, investors can make more informed investment decisions.

Most Frequently Asked

What is the Importance of Publicly Listing a Company?

Publicly listing a company through an IPO is essential for multiple reasons. It provides significant funding for growth and enables businesses to institutionalize by accessing broader financial markets. This process boosts a company’s visibility and credibility, allowing it to attract more investments and improve its capital structure. Additionally, publicly listed companies gain from increased transparency and better governance practices, which in turn raise investor confidence. This transformation is particularly advantageous for family-owned enterprises looking to expand and seize growth opportunities.

How Do IPOs Attract Investor Attention?

IPOs attract investor attention by presenting opportunities for substantial returns, especially in companies with high growth potential. Businesses going public typically release detailed prospectuses, allowing investors to make well-informed decisions. The process involves selecting good companies for IPOs, ensuring that they have robust financials and growth prospects. This selection is crucial as it determines the attractiveness of the IPO to investors. High-quality IPOs tend to garner significant interest, even when the number of investors declines, highlighting the importance of financial health and strategic selection in the IPO process.

Why Are Interest Rate Cuts Crucial for Economic Growth?

Interest rate cuts, particularly those anticipated from central banks, are critical in stimulating economic growth. Lower interest rates make borrowing cheaper for businesses and consumers, leading to increased spending and investment. Burak Salman emphasizes the importance of the Central Bank’s expected interest rate cuts by the year-end, noting their timely impact on the economy. Additionally, policies of major financial institutions like the Federal Reserve play a decisive role. These cuts can invigorate various sectors, contributing to an overall economic expansion and supporting the performance of publicly listed companies.

About Bulls Investment

Bulls Investment Securities Inc. ("Bulls Investment") operates in investment services and activities, compliant with the Capital Markets Law and related legislation. Authorized on 03.09.2015 (certificate number G-010(324)), it offers services including Transaction Brokerage, Portfolio Brokerage, Individual Portfolio Management, Investment Advisory, and Public Offering Brokerage Activities through Underwriting. Additionally, it provides Limited Custody Services and ancillary services such as capital markets consulting, credit granting, wealth management, and financial planning.