Public Offerings After the Pandemic
Chapter from the book:
Yürük,
M.
F.
&
Buğan,
M.
F.
(eds.)
2023.
Evolution of Financial Markets- III.
Synopsis
Following the difficulties experienced in the pandemic, many changes have occurred in the
way of investing in financial markets, access to markets, communication with investors and
other areas. Some of these changes have led to significant changes in the share markets. The
most important of these were increasing the money supply in national markets, increasing
borrowing interest and therefore interest rates, and in the following period, foreign
investments, especially from developing countries, were transferred to their own countries. In
the following period, both the periodic declines in the crypto markets, called "crypto winter",
and the loss of attractiveness of interest rates, increased interest in equity markets and a
significant increase in the number of investors. In parallel with these developments, the
increase in demand for publicly offered shares and rising prices increased the attractiveness of
public offerings and led to increased demand-side increases in this field. The primary market,
whose demand side has increased, has become more attractive for companies that want to
raise funds from the capital market, and thus there has been a significant increase in public
offerings. While the number of investors, which was around one and a half million, increased
to eight million after the pandemic, 135 new companies joined the Borsa Istanbul family as of
September 2023, and in 43 public offerings held in 2023 alone, around 60 billion funds were
transferred to our domestic companies as capital through public offerings from the capital
markets. With the public offerings held after the pandemic, the number of companies included
in the ISO-500 list and traded on the Stock Exchange increased from 65-69 to 83 companies,
reaching the highest number in the history of the Stock Exchange. Increasing the financial
literacy of the increasing number of investors and, accordingly, encouraging correct stock
market investments will lead to both the development of our capital market and the increase
of alternative investment opportunities.