Retail investors were literally shocked in December when millions lined up for IPOs hoping to go through the roof. 5 out of 7 shares offered to the public this month were priced below the public offering price.
It’s been word of mouth lately exceeding the population of some countries It seems that the number of our investors in the stock market is not doing very well.
So much so that over the past year, 5 million new investors have joined our stock exchange. So the total number of investors They will reach 8.5 million He restored his all-time record.
Although the target number of 8 million investors was reached in 2008, such ignorant new investors Participating in the stock market carried risks.
What happened to TAB Gıda, which broke the public offering record?
The public offering of TAB Gıda, which broke the historical record in October with the participation of 5,185,061 investors, was realized with a valuation of 130 TL and subsequently 207 TL levels He had it tested.
After a few months, the shares fell well below the offer price of 130 TL. The bottom point was around 95 TL. saw.
The market value of the company in periods when TAB Gıda shares exceed 200 TL 50 billion TLIt went beyond that. Today, while the value of the share is around 110 TL, the market value of the company has lost almost half of its value. Up to 29 billion TL It’s down.
TAB Gıda public offering size the largest public offering We note that he broke the record in the number of participants.
Most recent public offerings have broken through the ceiling and dropped to the offering price!
Of the 7 different companies that went public in December, Avrupakent Real Estate Investment Trust with (AVPGY) Sur Tatil Evleri Real Estate Investment Trust (SURGERY) broke the roof and crushed the enthusiasm of small investors from day one.
In this environment, where all IPOs entered into since the beginning of the year somehow made a profit for their investors and generally went through the roof. breaching the ceiling from day one It literally shocked the small investor.
This decline in IPOs, starting with TAB Gıda, appears to have subsequently damaged the confidence of small investors in IPOs. The current situation can easily be overlooked by uninformed investors. to panic selling It allowed.
Since public offers are done through various social media sites, only by looking at the ceiling and ceiling tables of the companies and without examining any prospectus, public offers are not accepted. There has been an unconscious accumulation.
So much so that many companies went public because they couldn’t get loans from banks. even in the past similar public offering trends In the end, just like today, there were balloon explosions.
But the most important point is that this public offering frenzy is just that solid and visionary companies In other words, companies that were promising and whose financial situation was well researched and exposed could somehow continue their journey.
That is, in the past 2010-2014 Dozens of companies went bankrupt during the IPO frenzy We should also note, however, that 85% of the 117 companies continue to operate. Very few of them provided returns above the index and inflation.
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So it would not be wrong to say that today’s IPO frenzy is experiencing a similar situation. With these declines it is important to be selective It looks like it will become clearer in the coming days.
Çates Elektrik, which recently went public, used the proceeds from the public offering to pay down its debt, according to its prospectus.
According to the KAP statement, existing loan debts In total, debts in the amount of 1,299,723,679 TL were repaid. In addition, the statement said it has repaid its foreign currency debt totaling $5,468,805 from its own internal resources.
Although some people on social media reacted to it, companies in approved prospectuses They state these situations clearly in advance. In case of non-compliance with the prospectus, they may face various sanctions from the CMB. However, judging by the reactions on social networks, the new investors did not read the companies’ prospectuses, so they entered the public offering. They do not research companies appears clearly.
“While the high performance of public offerings increased investor demand, this increased demand further increased the performance of public offerings and turned the process into a pyramid scheme. However, the recent upward dynamics of the BIST100 index has slowing with rising interest rateswith a drop in the flow of new buyers and fresh money and a significant drop in transaction volume. in the public offering index We’re seeing (XHARZ)’s performance start to wane.” he said.
Dükkancık pointed out that especially with the recent increase in the inflow of foreign investors, interest and momentum have started to turn towards large companies with high index weights. “Investors started questioning the IPO.
Following the announcement of public offers on many social media platforms What does the company do?Essential questions and answers like its balance sheet, investments and where it will use the IPO proceeds.
Instead of focusing on investment pointsFocusing on questions like how many lots can be bought from the offer, how many pockets the shares will go into, was one of the most important signs that the process was already heading towards an unhealthy point.
Companies where investors can now ask the right questions and find satisfactory answers We are facing a period when the company is moving towards a public offering..
It is worth noting that in this regard, both sector employees and supervisory and regulatory institutions have a big role to play in ensuring that investors and companies do not become victims of public offers in the future. At this point, when participating in public offerings, investors should scrutinize the news of public offerings more closely and be careful to make decisions accordingly.” he said.