Recently it has spread by word of mouth are larger than the population of some countries Our number of investors in the stock market does not seem to be yielding very good results.

So much so that 5 million new investors entered our stock exchange last year. So the total number of investors Reaching 8.5 million He renewed his historical record.

Although the target number of 8 million investors was reached in 2008, such unaware new investors Participating in the stock market came with dangers.

What happened to TAB Gıda that broke the public offering record?

The public offering of TAB Gıda, which broke a historical record in October with the participation of 5,185,061 investors, was realized at a valuation of TL 130 and subsequently 207 TL levels He had tested it.

After a few months, the stock fell well below the public offering price of 130 TL. The lowest point was about 95 TL. saw.

The market value of the company in periods when TAB Gıda’s shares exceed 200 TL 50 billion TLIt exceeded. While today the share value is around 110 TL, the company’s market value has lost almost half of its value. Up to 29 billion TL It’s downstairs.

The size of TAB Gıda’s public offering largest public offering We would like to point out that a record has been broken in terms of the number of participants.

Most recent public offerings broke the ceiling and dropped to the offer price!

Of the seven different companies that went public in December, Avrupakent Real Estate Investment Trust with (AVPGY) Sur Tatil Evleri Real Estate Investment Trust (SURGY) broke the roof from day one and killed the enthusiasm of small investors.

In this environment where all public offerings since the beginning of the year have somehow generated profits for their investors and generally gone through the roof. ceiling disturbances from day one It literally shocked the small investor.

This decline in the number of public offerings, starting with TAB Gıda, subsequently appears to have damaged retail investors’ confidence in public offerings. The current situation can easily be overlooked by unaware investors. to panic during sales It is allowed.

Since public offers are made through various social media pages, by just looking at the ceilings and ceiling tables of companies, and without examining any prospectus, public offers are not accepted. There was an unconscious accumulation.

So much so that many companies went public because they could not get loans from the banks. also in the past similar trends in public offering offerings Eventually, just like today, balloon explosions occurred.

The key point here, though, is that these public offering fads only exist solid and visionary companies In other words, companies that showed promise and whose financial situation had been properly researched and disclosed were able to continue on their way one way or another.

So in the past 2010-2014 Dozens of companies went bankrupt during the IPO frenzy between However, we should also point out that 85% of the 117 companies continue in business. Very few of these delivered returns above the index and inflation.

So, it wouldn’t be wrong to say that the current public offering craze is going through a similar situation. With these drops the importance of being selective It looks like this will become clearer in the coming days.

Çates Elektrik, which recently went public, used the proceeds from the public offering to pay off its debt, as stated in its prospectus.

According to the KAP statement existing loan debts A total amount of TL 1,299,723,679 in debts was repaid. In addition, the statement said it has repaid its foreign currency debt totaling USD 5,468,805 with its own internal resources.

Although there were comments from some people on social media, companies in approved prospectuses They clearly indicate these situations in advance. If the prospectus is not complied with, they may face various sanctions from the CMB. However, judging by the reactions on social media, new investors did not read the prospectus of the companies, that is, they participated in the IPO. They don’t research companies appears clearly.

Which states that a significant portion of the investor base is over 8 million listed investors. Director of Strategy and Asset Management Volkan Dükkancık:

“While the high performance of public offerings increased investor demand, this increased demand further increased the performance of public offerings, turning the process into a pyramid scheme. However, the recent upward momentum in the BIST100 index has done just that slows down due to rising interest rateswith the decrease in the inflow of new buyers and fresh money and the significant decrease in transaction volumes. in the stock market index We see (XHARZ) performance starting to weaken.” said.

Dükkancık pointed out that, especially with the recent increase in foreign investor inflows, interest and momentum are starting to focus on large companies with high index weights. “Investors started questioning IPOs. After the public offerings were announced on many social media platforms, What does the company do?Basic questions and answers such as its balance sheet, its investments and where it will use the IPO proceeds. rather than focusing on investment pointsFocusing on things like how many lots can be bought from the offering and how many caps the stock will reach was one of the key signals that the process was already heading towards an unhealthy point. Companies where investors can now ask the right questions and find satisfying answers A period awaits us in which the company is heading towards an IPO.. It is worth noting that in this regard, industry employees as well as supervisory and regulatory organizations play a major role in preventing investors and companies from becoming victims of public offerings in the future. At this point, when participating in public offerings, investors should study public offering reports more closely and ensure they make their decisions accordingly.” he said.

Our other economics-themed content: