Panel on "Access to Finance - Journey to Going Public" Held at ASO

A panel titled "Access to Finance - The Journey of Public Offering" was organized at the Ankara Chamber of Industry (ASO). Dr. Ahmet Dinçer, Deputy Secretary General of ASO, stated that public offerings create a trustworthy environment for international investors by providing financial resources to companies, thereby promoting transparency and institutionalization. He noted that public offerings have great potential for diversifying financing and strengthening corporate structure. Erdem Köşker, Director of Corporate Finance at Integral Investment, added that "Public offerings significantly facilitate access to finance for companies while also increasing their value alongside corporate governance."

Hosted by the Ankara Chamber of Industry (ASO) and supported by Integral Investment, the panel featured opening remarks from Dr. Ahmet Dinçer, with panelists including Erdem Köşker, Deputy Chairman of Sanica Heating Board Ali Fatinoğlu, ASO Council Member and Office Yem Board Member Hasan Cem Taşkaldıran, and Economist Serdar Pazı.

Dr. Ahmet Dinçer emphasized that access to finance is one of the cornerstones for sustainable growth and competitiveness in today’s business world, stating, "Public offerings have significant potential for diversifying funding and strengthening corporate structure. They not only provide financial resources to our companies but also create a trustworthy environment for transparency, institutionalization, and international investors. In 2023, 54 companies raised 79.3 billion TL through public offerings. However, this amount is only 0.9% of the banking credit stock. Our primary expectation for the coming period is an increase in these figures. According to data from the Public Disclosure Platform (KAP), there are 678 firms registered on BIST, with 426 based in Istanbul and 75 in Ankara. Among the sectors in which Ankara leads are defense industry, chemicals-pharmaceuticals, metal goods-machines-electrical devices, transportation vehicles, and technology. Therefore, it is clear that there is significant potential in this area for our firms based in Ankara."

Erdem Köşker remarked that with the onset of interest rate cuts in 2025, a decline in inflation is also expected. "Currently, nearly 70 firms are in line for public offerings at the Capital Markets Board (SPK). There is substantial demand from companies in Ankara," he noted. Köşker also indicated that public offerings promote institutionalization within companies, stating, "Public offerings greatly facilitate access to finance for companies. Along with corporate governance, the value of these companies also increases. Currently, there are 75 firms that have gone public in Ankara, and we expect this number to exceed 100 in the coming years. Integral Investment is actively working on this front, and our companies need to proceed carefully at this point. It is crucial for companies in the public offering process to establish a professional team that includes legal advisors and independent auditors. When the preparation process for a public offering is planned and managed well, it can be completed in a short time frame of 5-6 months."

Serdar Pazı pointed out that the Monetary Policy Committee of the Central Bank of the Republic of Turkey (TCMB) recently gave early signals that interest rate cuts could come in December. "I believe that a few percentage points of interest rate cuts in December will be the first signals of a continued interest rate reduction campaign in 2025. The decline in interest rates will also reflect on the costs for companies. We are moving into a period where the cost of money will decrease relatively. On the other hand, I also think that the foreign investor's perspective on the stock market will turn more positive," he remarked. Regarding public offering processes, Pazı stated, "If a public offering process begins today, it will take 6 to 12 months for the process to be completed. Once all permissions are obtained, it is likely that the conditions for publicly offering your company would be better compared to today."

Ali Fatinoğlu emphasized that entering the stock market is essential not only for raising funds but also for establishing corporate governance. He continued, "Currently, if you want to invest and plan to do so through credit, it is not very attractive due to interest rates. However, with a public offering, you can invest without paying interest by bringing in shareholders. Considering the current economic conditions, it is predicted that interest rates will be around 30% next year. In this case, it is highly beneficial for any company looking to enter the stock market to prepare by the end of 2025."

Hasan Cem Taşkaldıran highlighted that going public provides greater trust. "Publicly offered companies strengthen their finances. They are able to make long-term investments and enhance their infrastructure. By going public, we have not only accessed finance but also added value to our brand. With the public offering, we have also reduced our average costs. We have achieved a more consolidated structure. If you are confident in your business, if you believe in your company, and if you have future plans, going public both provides a financial increase and transforms your company into a sustainable entity," he said.