IPO (Initial Public Offering)
Key points
- The company can raise new funds through a capital increase (primary) or existing shareholders can sell (secondary).
- An IPO gives investors a chance to become early shareholders and gives the company growth capital, visibility and liquidity.
- high demand can mean tiny allocations (a few lots).
Formula / calculation
a price or price range is set, demand is collected for 2–3 days, and if demand exceeds supply allocation is equal or pro rata. Offering size = Number of shares × IPO price. On the first trading day the price forms within the ceiling/floor margin.
Interpretation
In Türkiye IPOs are conducted by book building through a consortium of brokers.
An IPO gives investors a chance to become early shareholders and gives the company growth capital, visibility and liquidity. Subscription demand and the allocation ratio measure investor interest; Yatırımcı.AI tracks newly listed stocks like any other BIST stock.
Pitfalls
high demand can mean tiny allocations (a few lots). Early ceiling streaks may not last, and shares falling below the IPO price are common. Read the prospectus carefully and compare the valuation with sector peers.
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Frequently asked questions
What is IPO (Initial Public Offering)?
An IPO is a company selling its shares to the broad investor public for the first time or in addition, and starting to trade on the exchange.
How is IPO (Initial Public Offering) calculated?
a price or price range is set, demand is collected for 2–3 days, and if demand exceeds supply allocation is equal or pro rata. Offering size = Number of shares × IPO price. On the first trading day the price forms within the ceiling/floor margin.
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