Upcoming public offerings, demand collection dates and valuation methodology. What you need to know before participating in an IPO.
IPO activity on Borsa Istanbul has picked up. Upcoming transactions and what investors need to know.
**IPO Participation Process**
1. Review the company's prospectus and public disclosure documents
2. Note the demand collection dates
3. Submit a request through your brokerage's portal
4. Monitor the allocation ratio
5. Follow the exchange admission date
**How to Read the Valuation?**
The IPO price should be compared against similar company multiples. P/E, EV/EBITDA and P/B multiples are weighted according to the sector. Growth expectations determine the premium or discount.
**IPO Risks**
- First-day performance is uncertain and depends on market conditions
- The allocation ratio may be low; monitor the demand ratio
- Watch for sales after the lock-up period of key shareholders
- Sector conditions can create pressure independent of company-specific factors
**Historical Data**
The vast majority of IPOs carried out on BIST in recent years opened above their offer price in the first session. However, six-month performance diverges significantly depending on the sector and market conditions.
**Conclusion**
IPO participation can offer a short-term return opportunity. For a long-term investment decision, fundamental analysis of the company is essential.
