ipo & investment banking
DESCRIPTION
TRANSCRIPT
Initial Public
Offerings
&
Investment Banking
How Does a Company Raise
Capital?
Private Placement vs.
Public Offerings
Going Public
Disadvantages;
• Costs of filing numerous reports
• Insider dealing becomes more difficult
• Managing investor relations is time consuming
• Market-determined price may not reflect true value
Advantages;
• Financial resources
• Liquidity
• Widespread publicity at home and abroad
• Institutionalization
• Secondary public offering opportunity
Financial Institutions
144 financial inst. are operating
Main business: Intermediation, portfolio &
asset management
Paid by commissioning from each activity they
do
In IPO process
2
47
05
Best-effort
underwriting
Stand-by
underwriting
Full underwriting Mixed
Methods used in IPO between 2002 and 2009
34
13
Stand-by underwriting Partially stand-by underwriting
Turkey’s IPO Background
• Banking crisis 2001
• Terrorism
• Iraq War 2003
• Political instability
• Financial crisis 2007
54 firms went public between
2002/2009
IPO Future
How about FUTURE?
New campaign (IMKB, TOBB, TSPAKB),
purpose is to reach 1000 companies by 2023
(Huseyin Erkan stated)
Until the end of 2010, 27 new companies (Koza,
Pegasus ..)
Foreign Investors
Finally;
I would like to clarify IPO with an
example from Turkish Market.
• Consortium with 39
financial inst.
24.98 % of its shares
has been sold
(312,250,256 stocks)
Best-effort underwriting
method
Book building through
collection of beats (6.4 –
8 TL)
Results; 2.476.100.502,
64 TL revenue
• Consortium with 36 fin. inst. leading by Is Inv.
• 25.18 % of its shares has been sold (322,000,000 stocks)
• Partially stand-by underwriting
• Book building through collection of beats (4.75 – 5.93)
• Results; 1.723.298.83 TL revenue.