Halkbank meets seven-fold demand in its IPO
Posted by meb at May 5th, 2007
Foreign demand for Halkbank’s public offering, this year’s biggest public offering, is seven times higher than the offered amount. Seventy percent of Halkbank’s 25 percent initial public offering (IPO) was reserved for global corporate investors. The subscription process in London and the US was completed on Thursday and went well. Analysts said that the domestic demand for Halkbank stocks may exceed Vakıfbank’s IPO.
Stock market flotation is one of the most common methods for companies to raise their capital. The public offering rates and numbers are also an indicator of a healthy economy.
In the last seven years in Turkey IPOs from 80 companies brought in $6.5 billion, according to Turkish Stock Market Investors Association (BORYAD) research. The hottest period in capital markets was 2000, a record-breaking year in which the number of stock investors tripled.
In 2000, 35 companies were privatized, netting $2.8 billion. But the 2001 economic crises caused public offerings and revenues to decline sharply. Only one company was sold that year, at a price of $200,000.
IPOs increased slightly in the following years. Four companies made a stock market flotation and collected $56.5 million in 2002. In 2003 two companies went public and earned $11.3 million, and in the following year revenues jumped to $600 million from the public offerings of 12 companies. 2005 showed the signals of a recovering economy and IPO revenues soared to $1.74 billion by nine companies. In 2006 15 companies’ IPOs earned a total $930 million, and this year two companies alone earned $328 million. In terms of IPO value, Turkcell and Vakıfbank are by far the biggest earners. Turkcell’s IPO was worth $1.78 billion, Vakıfbank’s $1.27 billion. TAV Airports followed with $322 million, Coca-Cola İçecek with $318 million and BİM Mağazacılık with $214 million.
There was a much higher proportion of domestic investors when the İstanbul Stock Exchange (İMKB) broke records in 2000. But in the public offerings in recent years the number of domestic investors has gradually dropped.
Akmerkez Real Estate Investment Trust (REIT) has the highest proportion of foreign ownership: 98 percent. Zorlu Energy has the highest number of foreign investors in terms of participant numbers to its public offering in 2000: 474,000. Akenerji is second with 472,000 investors and Ayen Energy is third with 330,000. Energy companies are popular with foreign investors because the rising stock values of Aksu Energy, which was offered to public in 1999 and appreciated by 400 percent in a very short time.
Investors who purchased stock in these 80 companies earned 4.85 percent less than the İMKB’s benchmark 100 Index on average. The investors of Altınyağ stocks earned the least with 92.18 percent less than İMKB-100 Index average. Following Altınyağ, Escort Computer had 84.13 percent and Link Yazılım made 83.33 percent less.
The most profitable companies among the public offered companies in the last seven years were Acıbadem Health Services with 594.8 percent, Türk Ekonomi Bank with 243.32 percent, İş Financial Leasing with 131 percent and Bank Asya with 98.55 percent.
source: Today’s Zaman
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