Foreign investors are awaiting Turkish public offerings
Friday, October 23, 2009
Foreign and domestic investors are awaiting initial public offerings of large Turkish companies, according to Huseyin Erkan, President of the Istanbul Stock Exchange (IMKB).
Mr. Erkan said that it is the perfect time for initial public offerings. The Privatization Administration should definitely consider making an initial public offering. He noted that it is appealing for foreign investors that Turkey has managed the crisis well and performed admirably.
In a landmark development, the Athens Stock Exchange and the Istanbul Stock Exchange have announced the creation of an index with the 30 largest companies, 15 of the largest and most heavily traded companies from each market. The number of stocks from the banking sector will be limited to four from each market to boost trading in the region’s largest stock markets.
"The GT-30 will certainly add further visibility to both markets, which is a significant contribution at a time when the world markets are gradually recovering from the financial turmoil”, said Mr. Erkan.
He commented: “If large companies are offered to the public now, I expect the demand to be high. An initial public offering for one or two medium-size or large-scale companies may take place through the end of the year. The significant initial public offerings are likely to take place in 2010.”
In good news for Istanbul property investors, Ali Babacan, Turkey's State Minister and Deputy Prime Minister, said the vision of the government is to make Istanbul initially a regional and eventually a “global finance center”. He enumerated those factors as low business running costs, qualified labor force, domestic and regional economic growth potential, and attractive style of living.
Due to the huge FDI inflows, Construction activity is booming in and around Istanbul and along Turkey’s enormous coastline. Buoyed by a supply of quality residential property, a growing retail sector and increases in disposable income and employment opportunities, the demand for property seems set to continue. Istanbul has great investment potential as growing population and economic growth has lead to high price rises in recent years. Also locals are involved in the property market which means there is excellent resell market and exit strategy. So now would be an ideal time to purchase off-plan property in the city.
Social BookmarkingMr. Erkan said that it is the perfect time for initial public offerings. The Privatization Administration should definitely consider making an initial public offering. He noted that it is appealing for foreign investors that Turkey has managed the crisis well and performed admirably.
In a landmark development, the Athens Stock Exchange and the Istanbul Stock Exchange have announced the creation of an index with the 30 largest companies, 15 of the largest and most heavily traded companies from each market. The number of stocks from the banking sector will be limited to four from each market to boost trading in the region’s largest stock markets.
"The GT-30 will certainly add further visibility to both markets, which is a significant contribution at a time when the world markets are gradually recovering from the financial turmoil”, said Mr. Erkan.
He commented: “If large companies are offered to the public now, I expect the demand to be high. An initial public offering for one or two medium-size or large-scale companies may take place through the end of the year. The significant initial public offerings are likely to take place in 2010.”
In good news for Istanbul property investors, Ali Babacan, Turkey's State Minister and Deputy Prime Minister, said the vision of the government is to make Istanbul initially a regional and eventually a “global finance center”. He enumerated those factors as low business running costs, qualified labor force, domestic and regional economic growth potential, and attractive style of living.
Due to the huge FDI inflows, Construction activity is booming in and around Istanbul and along Turkey’s enormous coastline. Buoyed by a supply of quality residential property, a growing retail sector and increases in disposable income and employment opportunities, the demand for property seems set to continue. Istanbul has great investment potential as growing population and economic growth has lead to high price rises in recent years. Also locals are involved in the property market which means there is excellent resell market and exit strategy. So now would be an ideal time to purchase off-plan property in the city.
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