Crisis in Borsa İstanbul and Declines in Initial Public Offering (IPO) Shares
As market value declined in Borsa İstanbul due to the shock of fund and stock manipulation investigations, most IPOs from the past year experienced losses.
While the crisis of confidence created by fund and stock manipulation investigations caused sharp declines across Borsa İstanbul, the majority of initial public offerings conducted in the past year resulted in losses for investors.
Major Losses in Market Value
The total market value of companies within the scope of BIST All dropped from its peak of 2.264 trillion TL in May to the level of 16.21 trillion TL as of October 2. During this process, a total of 6.43 trillion TL was wiped from the market value of the companies.
Negative Trend in IPO Shares
The selling wave also negatively affected the recent IPO frenzy. As of the October 2 close, the share prices of 23 out of 36 IPOs conducted in the past year fell below their initial public offering prices.
Experts' Evaluations on Pricing and Crisis
Economist Emre Şirin stated that these declines are a result of the current IPO system, while Ali Ağaoğlu stated that companies were offered to the public above their values. Experts drew attention to fund liquidation and liquidity needs.