Public Offering

You may participate in the public offers via Burgan Yatırım, easily from Burgan Trade without having to enter PIN again, from ON/ ON Internet Branch – Equities/VİOP trades step.

In the case of public offers through Book-running and Sale Method at Borsa Istanbul, it is sufficient to select the code of equities offered to public, in the “Equities Purchase” field on www.burgantrade.com and BurganTrade mobile application, and just enter the amount.

In the case of public offers through book-running method via a consortium including Burgan Yatırım, entering your request in Public Offer field on www.burgantrade.com is sufficient.

Public offers may be tracked on Burgan Bank website.

To participate in public offers, you need to have an investment account with Burgan Yatırım.

If you don’t have an Investment account yet, you may easily open an account on Burgan Mobile/Internet Banking.

Burgan Yatırım Menkul Değerler A.Ş. offers brokerage service for equities and VİOP trades

Click here for Burgan Yatırım website.

If you are an ON’ner;

If you are not an ON’ner yet;

Current list of companies to be offered to public, and book-running dates are available here. You may review the information on the equities to be offered to public, and how to participate in the process.

Public offer is the initial issuance of shares by a company to the public. This means that a private company decides to become 'publicly traded'. In other words, a company that was privately held until that time becomes a public company by offering its share capital to sale. A company has few shareholders before public offer, including founds, angel investors, and risk shareholders. However, after public offer, company offers its shares to sale, to several individual investors. As an investor, you may directly buy shares in a company and become a shareholder.

Any private company that meets the requirements of Borsa İstanbul and CMB etc. can sell its share capital through a private public offer. Companies that enter public offer process generally have a proven growth history and positive financial indicators. Such companies need capital to speed up the growth process and expand their operations. Public offer is an effective way of raising such capital needed by a company. Companies may increase their shareholders’ equity by issuing new shares through public offer, or existing shareholders may offer their shares, without new capital increase. Public offer is also seen as an exit strategy for initial investors and risk venturers of the company. As the company becomes liquid through sale of shares in public offer, venture capital funds or existing shareholders of the company may sell their shares through public offer for the return on their investment in the company and leave as shareholder of the company.

From individual investors’ perspective, public offer processes are attractive, and are generally seen as an investment opportunity. Because public offers, by its very nature, make the company visible in media, and accessible by many people, and through company’s communication works to increase the share value. Company shares offered to public tend to generate variable price movements on the public offer day or shortly thereafter. This may sometimes create large gains for individual investors, or cause major losses. Consequently, individual investors should consıder each public offer according to the company’s public offer prospectus as well as their own individual finances and risk tolerances.

Each company needs in capital to keep growing. Sale of shares through public offer allows development of new products and services and to improve the business processes using the means collected.

Public offer has positive effect on companies’ financial structure, liability and capital balance. It is much easier to reach the funds needed for new investments for companies that have stronger financial statements.

In public offer process, price of company shares are determined through trades in capital markets according to balance of supply and demand. This publicly available and transparent pricing makes it possible to know the company size and asset value.

Public offer announcements create an opportunity for media access and public relations. Company is recognized more, through organic communication and the communication by shareholders in the public offer (investment companies, banks, the company offered to public itself etc.). This is an effective method for delivery of the company’s products and services to the new customer audience in the market.

For proving strong financial statements and growth potential, a company that is offered to public earns trust and value in business partners’ (suppliers, banks etc.) and customers’ view.

Company’s prestige increases and builds trust with present employees and professionals in the industry, working at other companies. This facilitates the company’s access to more competent employees.

From the perspective of individual investors, participating in public offer processes and becoming shareholder of a company have various advantages. However, there are risks such as high price variability.

Initial trade advantage is generally important for individual investors in the public offer processes. Especially, public offer of high potential or prestige companies become valuable. Public offer process may create the opportunity to but the company shares much lower than their real value.

When the company you become a shareholder in the public offer process grows and increases its income, the equities you purchase may earn you high return on investment in the long run.

When you are involved in a public offer process, you buy the company’s shares at the public offer price before they are traded on Borsa Istanbul. When the shares of such company start to be traded on Borsa Istanbul, those shares may be valued at a price that is higher or lower than the public offer price. When the opening price is higher than the public offer price, investors earn gains in the short term. Generally, thanks to positive expectations and media visibility in public offer process, shares offered to public are expected to perform well on the first trade day. However, this is not always the case, and it is possible that the share prices fall at the end of first trade day. If you are investing in a company, in the future and potential of which you believe, and expect long term returns, sharp price changes after the public offer may be unimportant for you.

Whether a public offer process will be advantageous for short or long term investors or not depends on a proper analysis of the financial statements of the invested company, and its industry and its potential. Such analyses may be difficult as there may be limited publicly available information about the company which is offered to public for the first time. However, public offer prospectus is an important resource on the company’s management team, target market, competitive environment, company’s financial status, seller of the shares offered to public, expected price interval, potential risks and the number of shares to be issued, etc. In this regard, investing in shares already traded in capital markets is similar to participating in public offer processes. However, public offer processes may generally pose higher risk and higher return.

Public offers of companies which are currently not publicly traded are called initial public offer (IPO). A company that is already offered to public may enter public offer process again, which is called secondary public offer. Generally, companies which offer a small part of their share capital in the initial public offer may prefer secondary public offer as the public offer rate is small.

Price-setting and book-running in public offer process may be done with various methods. According to the preferred method, there are various public offer methods that can create advantages and disadvantages both for the company offered to public and for the investors.

Sale of shares through book-building method is divided into 3, being book-running at fixed price, public offer through receiving price bid, and book-running in a price interval.

Sale at the exchange is divided into sub-categories, being continuous auction method, fixed price method, and variable price method.

Public offers of companies which are currently not publicly traded are called initial public offer (IPO). A company that is already offered to public may enter public offer process again, which is called secondary public offer. Generally, companies which offer a small part of their share capital in the initial public offer may prefer secondary public offer as the public offer rate is small.

Price-setting and book-running in public offer process may be done with various methods. According to the preferred method, there are various public offer methods that can create advantages and disadvantages both for the company offered to public and for the investors.

Sale of shares through book-building method is divided into 3, being book-running at fixed price, public offer through receiving price bid, and book-running in a price interval.

Sale at the exchange is divided into sub-categories, being continuous auction method, fixed price method, and variable price method.