April 20, 2025
Trending News

Failed Companies That Lost People’s Money on the Stock Market After the ‘IPO’ Frenzy of 2010-2014 – Part 3

  • November 21, 2023
  • 0

The development of a country’s capital market the country’s economic system is important for. In countries with developed and developing capital markets, companies contribute to the growth of

Failed Companies That Lost People’s Money on the Stock Market After the ‘IPO’ Frenzy of 2010-2014 – Part 3

The development of a country’s capital market the country’s economic system is important for. In countries with developed and developing capital markets, companies contribute to the growth of the economy by finding resources more easily. They contribute.

Additionally development of the capital markets It also has a positive impact on the number of investors who have confidence in the market. It is therefore expected that savings will increase in the long term.

Because the capital markets make such a large contribution in the long term, Mobilization of public supplyAn investigation has been started under the name i. This mobilization; between the Istanbul Chamber of Industry, Borsa Istanbul, TOBB (Union of Chambers and Commodity Exchanges of Turkey) and CMB (Capital Markets Board). On 07.08.2008 It started with the signed protocol.

What was the purpose of the mobilization of public supply?

Gong ceremony of public offering

The main goal of this mobilization was to increase the number of Turkish companies traded on the stock exchange. With this protocol created in 2008, in 2023 The number of listed companies rose to 1,000is the number of investors in the stock market up to 8 million people was intended to achieve.

With this protocol, there has been a significant increase in the number of companies offered to the public since 2010. While the number of listed companies officially reached 482 at the end of 2022, on November 18, 2023, the date this content was prepared, 529 appears as.

Nowadays, interest in the stock market has increased significantly under the influence of public offerings; So much so that, according to the data announced last week, the week in which TAB Gıda was offered 8.3 million investors According to current data, this number is 8 million 156 thousand We see it coming down.

The reason for this decline can be interpreted as a slight decline in the index and the early breakout of new public offerings. Because what the unconscious new investor dreams of is always These were public offerings that went through the roof.

So much so that many of the investors have reached over a million in the last month with hearsay information Since it entered our stock market, and the public offerings broke the ceiling, they immediately took a selling position in panic. More interestingly, since there were too many people doing this, this order was not executed and the stock likely fell.

If we look at the number of listed companies in selected countries in the world, a picture like this emerges. (2022)

USA Turkey India Israel France England Spain Germany Sweden
4800 482 5085 613 1160 2914 3288 758 787

This table data from last year shows the number of companies traded on the stock exchanges per country. Recently mainly in Turkey Many companies go public every month Even though we think so, our stock market is inferior to other countries in terms of the number of ‘public’ companies. far behind we can say.

Let’s also look at the comparison of the total number of companies offered to the public each year in Turkey between 2004 and 2023.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
12 9 15 9 2 2 22 27 47 20

Since 2009, public offering efforts have started at full speed. until 2010 By then, dozens of companies had gone public.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
14 6 2 3 11th 6 8 52 40 47(+)

Public offering at the beginning of the pandemic period to a stop had arrived. During this period, many companies postponed their IPO plans, and with the normalization period, many of them went public in 2021 and 2022.

Even though there is still more than one month to go until the end of this year, Already 47 companies Let’s say it’s a public offering. This number will increase slightly.

There was a public offering craze in 2010-2014, just like there is today.

Year Ring
opened
Company
Bankrupt
Company
Number
inflation
below
Provide proceeds
of the index
below
Provide proceeds
2010 26 3 14 14
2011 24 4 10 10
2012 32 5 8 12
2013 20 4 2 3
2014 13 An 2 2
TOTAL 115 17 36 41

In these times when interest in public offerings is at its peak, experts continue to warn. Rahim Ak from HabertürkHe pointed out that a similar stock market storm occurred between 2010 and 2014 and said the results were not good for investors.

The reason for saying this is that the IPO companies went public between 2010 and 2014. 17 of the 117 companies went bankrupt and many of the rest below inflation It was the fact that it delivered returns.

Some of the companies that were offered in these years and became history by victimizing their investors were the following:

  • Ericom Telecommunications
  • Atac construction
  • Mango food industry
  • Harmony Food
  • Latek Logistics
  • Aksel Investment Holding
  • Atlantic petroleum products
  • Arbul integrated textiles
  • Plaspak chemistry
  • Ministers Media
  • Bimeken

In the first part of our content series, we discussed the Bimeks collapse story in detail.

In the second part we told Raks’ story.

Well, weren’t there companies in these years offering products and making good profits? Of course it was.

Especially the ones that were offered to the public in 2013 Teknosa, Tümosan, Jantsa, Orge Elektrik, Koza Altın, Aksa, Gözde Girişim The profits of companies like these exceeded 1,000 percent, providing their investors with returns many times higher than inflation. highest return Politeknik Metal, which was offered to the public in 2014, returned 28 thousand percent.

If you are interested in public offers, we recommend that you read our other content:

Source: Web Tekno

Leave a Reply

Your email address will not be published. Required fields are marked *