Burak Salman: "Publicly Listed Companies Will Be the Leaders of the Next 10 Years"

Burak Salman, the General Manager of Bulls Investment Securities, underscores the importance of Initial Public Offerings (IPOs) for the growth and institutionalization of companies. He predicts that publicly listed firms will dominate in the next decade, highlighting significant advantages offered by Borsa Istanbul for these companies. According to Salman, IPOs provide businesses with substantial financing opportunities, especially in the current economic climate.

The Importance and Future of IPOs

Investors are keenly observing the performance of Borsa Istanbul. Recent volatility and positive trends have enticed small investors back into the stock market. Despite a downtrend after the July 18 peak, Burak Salman provides insights into the recent fluctuations and emphasizes the promising future of IPOs in light of these changes.

Increase in IPOs

Salman predicts a rise in the number of publicly listed companies soon, emphasizing the financing opportunities IPOs present. He stresses the necessity for family-owned enterprises to institutionalize and leverage growth opportunities through IPOs.

Attracting Investor Attention

Selecting Good Companies

Salman asserts that wisely chosen companies for IPOs will flourish in growth and corporate financing. He guarantees ongoing efforts to link investors with high-quality IPOs, crediting the successful operations and expertise of their corporate finance team. An example is Cem Zeytin, which garnered significant attention and successfully completed its demand process.

Interest in Quality IPOs

Despite a recent dip in the number of investors, Salman notes that interest in quality IPOs remains high. He emphasizes that companies with strong financials tend to prevail in the IPO process, advising investors to be discerning in their choices.

Interest Rate Cuts and Economic Expectations

Salman highlights the significant role of anticipated interest rate cuts by the Central Bank by year-end, stressing their critical timing. He states that the policies of the Federal Reserve and global central banks will be decisive in this context and that expected interest rate cuts will contribute to economic growth.

Bulls Investment's Growth Strategy

Bulls Investment’s Growth Success

Founded in November 2023 through the acquisition of Sanko Securities, Bulls Investment has witnessed remarkable growth in a short period. Their six-month financials reveal a 2.7-fold increase in assets, reaching TL 1.3 billion. Salman underscores substantial investments in branch expansion and digitalization, reiterating a commitment to continued growth in this direction.

Stock Market Targets and Sector Analyses

Salman notes a roughly 35% value increase in Borsa Istanbul since the beginning of the year, with significant contributions from the banking sector. He predicts that various sectors will come to the forefront with the anticipated interest rate cuts, estimating the medium-term stock market target to be around 13,000 points.

Fitch's Positive Outlook on Turkey

Turkish Economy

Salman highlights the positive impact of Fitch’s upgrade of Turkey’s credit rating to BB-, which is expected to bolster economic growth and support reserve targets. He anticipates that Fitch will maintain a positive outlook on Turkey, expecting the Central Bank to commence interest rate cuts by 2025.

Frequently Asked Questions About IPOs

What is an IPO and How Does It Work?

An IPO is a process in which a company’s shares are sold to the general public. This process secures significant funding for growth and institutionalization and usually occurs on a stock exchange, granting the company public status. This allows investors to buy and sell the company's shares. One primary advantage of an IPO is that it strengthens the company's capital structure and enhances its transparency.

What Are the Advantages of Publicly Listed Companies?

Publicly listed companies enjoy multiple financial and strategic benefits. Firstly, financing becomes more accessible since an IPO raises large capital amounts. Secondly, the company's visibility and reputation improve, forming a stronger market position. Moreover, becoming publicly listed enhances transparency, hence boosting corporate governance. Post-IPO, companies undergo more detailed reporting and auditing, which increases investor confidence.

Why Are IPOs Important for Investors?

IPOs offer new investment opportunities for investors, particularly in companies with growth potential, offering high returns. They enable investors to diversify their portfolios by purchasing shares from various sectors, thus spreading risks. Additionally, IPOs involve detailed prospectuses and public disclosure processes, allowing investors to make more informed decisions.

Most Frequently Asked

What is an Initial Public Offering (IPO) and how does it work?

An Initial Public Offering (IPO) is a crucial process where a private company offers its shares to the general public for the first time. This transition allows the company to raise significant funding for growth and institutional development. Typically facilitated through a stock exchange, the IPO process turns the company into a public entity, enabling investors to buy and sell shares. The primary benefit of an IPO is enhanced capital structure, improved transparency, and elevated market reputation, which increases stakeholder trust and fosters long-term sustainable growth.

Why are IPOs important for family-owned enterprises?

Family-owned enterprises benefit immensely from IPOs. By going public, these businesses secure substantial financing which supports growth, operational expansion, and institutionalization. IPOs also bring about the professionalization of management structures, enhancing corporate governance and operational transparency. This transition not only boosts the company’s market credibility but also attracts diverse investment sources. Furthermore, listing on a stock exchange shifts a family business’s outlook from a privately controlled entity to a market-driven organization, allowing it to pursue strategic growth opportunities and achieve sustainable long-term development.

About Bulls Investment

Bulls Investment Securities Inc. ("Bulls Investment") provides 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, Best Effort Brokerage, and Public Offering Brokerage Activities through Underwriting. Moreover, it provides Limited Custody Services and additional services like capital markets consulting, credit and lending, general investment advice, wealth management, and financial planning.