Click. Borsa İstanbul Marketing & Sales Department

Transcription

1 Click Borsa İstanbul Marketing & Sales Department January 2016

2 Table of Contents 1 Borsa İstanbul Overview and Transformation Process 2 Borsa İstanbul s Regional Strategy 3 Borsa İstanbul Markets Overview 4 Listing and IPO Process in Borsa İstanbul 5 Dual Listing in Borsa İstanbul: What is Offered for Foreign Companies? 2015 Borsa İstanbul A.Ş. All Rights Reserved 2

3 Borsa İstanbul Overview and the Transformation Process 2015 Borsa İstanbul A.Ş. All Rights Reserved 3

4 TURKISH ECONOMY Facts & Figures TURKEY GDP GDP growth Rate Avg. Growth Rate: Population Credit Rating Foreign Trade Volume FDI Stock Inflation (CPI) Foreign Reserves 820 bn 2.9% (2014) 6.7% ( avg. Est.) 76.9 mn (2014 est.) S&P: BB+ Moody s: BAA Fitch: BBB- USD 417 bn (2014) USD bn (2014) 8.09% (May 2015) USD bn (May 2015) 2015 Borsa İstanbul A.Ş. All Rights Reserved

5 BORSA İSTANBUL OVERVIEW AND TRANSFORMATION PROCESS History & Institutions 1873 Dersaadet Tahvilat Bourse 1981 Capital Market Law 1982 Capital Markets Board 1985 İstanbul Stock Exchange 2012 New Capital Market Law 2013 Borsa İstanbul İstanbul Settlement & Custody Bank Licensing Training Agency Central Registry Agency Turkish Capital Markets Association 2015 Borsa İstanbul A.Ş. All Rights Reserved 6

6 BORSA İSTANBUL OVERVIEW AND TRANSFORMATION PROCESS The Roadmap SPA with NASDAQ OMX 2023 Target USD1 trillion MCAP State of the Art Trading Platform and Technologies PoP Co-Location NOMX Technologies Demutualization (April 2013) Vertical/Horizontal Consolidation IPO % 4.76 % % % New Capital Markets Law 2015 Borsa İstanbul A.Ş. All Rights Reserved 7

7 BORSA İSTANBUL Fundamental Figures P/E RATIOS (12/2015) BIST Average BIST BIST Banking 9.66 Agriculture 9.43 IT Manufacturing Mining 6.17 Construction Retail (06/15) Logistics & Telecom Companies traded 0.7 Bn USD Avg. MCAP (Stars + Main Mkts.) 215 Bn USD Market capitalization 2015 Borsa İstanbul A.Ş. All Rights Reserved

8 Borsa İstanbul s Regional Strategy 2015 Borsa İstanbul A.Ş. All Rights Reserved 9

9 BORSA İSTANBULS REGIONAL STRATEGY The Vision Strategy 1: Becoming the financial supermarket of the region Achieving fast, easy and cost-effective communication via establishing interconnectivity among the settlement and clearing institutions of the region Development of commodity markets Facilitating joint business and product development Strategy 2: Becoming the financial gateway of the region Marketing of trading data Integration of market platforms Order routing Joint Index formation Settlement and clearing center Cross/dual listings Strategy 3: Becoming the financial technologies center of the region Regional technopark formation Sales of market technologies Development and rehabilitation of trade, settlement, clearing, risk management and monitoring systems Strateji 4: Becoming the financial know-how center of the region Pioneering in the education efforts to increase financial knowledge, and awareness Facilitate and support financial research efforts 2015 Borsa İstanbul A.Ş. All Rights Reserved 10

10 BORSA İSTANBULS REGIONAL STRATEGY The Four Pillars of the Regional Strategy Dual Listing Acquisitions Technology Transfers Data Distribution & Trade Infrastructure Projects Listingİstanbul Program Regional Stock Exchanges NASDAQ OMX Trading Technologies EDDN Dual Listing of equities/debt securities Regional Settlement & Clearing Houses Point of Presence Joint Index Formation Dual Listing of Indexes Increase Positions in the Already Acquired Exchanges Co-Location Connectivity 2015 Borsa İstanbul A.Ş. All Rights Reserved 11

11 Borsa İstanbul Markets Overview 2015 Borsa İstanbul A.Ş. All Rights Reserved 12

12 BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Markets Overview EQUITY MARKET BIST Stars BIST Main BIST Emerging Companies Collective and Structured Products Watchlist Pre-Market Trading Platform Equity Market for Qualified Investors DEBT SECURITIES MARKET Outright Purchases and Sales Market Repo-Reverse Repo Market Offering Market for Qualified Investors Repo Market for Specified Securities Interbank Repo -Reverse Repo Market Equity Repo Market Eurobonds Market 2015 Borsa İstanbul A.Ş. All Rights Reserved PRECIOUS METALS AND DIAMOND MARKET Precious Metals Market Precious Metals Lending Market Diamond and Precious Stone Market DERIVATIVES MARKET Equity Options & Futures Equity Index Options & Futures Currency Options & Futures Precious Metals Futures Commodity Futures Power Futures PRIVATE MARKET Connects companies and investor for equity transactions without capital market obligations 13

13 Equity Traded Value (Bn USD) BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Equity Market Figures Equity Market Traded Value in Europe (Bn USD, 2015) Euronext 2,076 Deutsche Boerse 1,555 BME Spanish Exchanges 997 SIX Swiss Exchange Market Cap (Bn USD) NASDAQ Nordic Borsa Istanbul Moscow Exchange th Highest Equity Traded Value in Europe 120 Oslo Bors 125 Wiener Borse 32 Irish Stock Exchange Borsa İstanbul A.Ş. All Rights Reserved Source: WFE, incl. only listed equities 16

14 BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT BIST Emerging Companies Figures 1400 Trading Volume (mn USD) Companies Relaxed market acceptance conditions for SMEs with growth potential Enables SMEs to accesss capital via IPO Long term financing alternative with low costs Up to TL subsidy/support from KOSGEB (SME Development Center of Turkey) SMEs Borsa İstanbul A.Ş. All Rights Reserved 17

15 BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Collective & Structured Products Market Equities Warrants and Certificates Securities Mutual Funds Real Estate Mutual Funds ETFs Brokerage House Warrants Enterprise Capital Mutual Funds Certificates 2015 Borsa İstanbul A.Ş. All Rights Reserved 18

16 BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Debt Securities Market Overview Repo/Reverse Repo Market Government bonds, treasury bills and liquidity certificates are eligible securities for repo/reverse repo transactions 1,280.4 Bn USD traded value Interbank Repo-Reverse Repo Market Established for banks to facilitate the repo-reverse repo transactions in organized market conditions 2,056.9 Bn USD traded value Outright Purchases and Sales Market Debt securities, securitized asset and income backed debt securities, lease certificates, liquidity bills and other securities which are approved by Borsa İstanbul Board are traded Bn USD traded value 2015 Borsa İstanbul A.Ş. All Rights Reserved 19

17 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Debt Securities Market Figures Total Value of Bond Trading (Billion USD) 2,772 2,513 2,199 2,308 2,449 3,814 3,623 3,068 Daily Average Bond Trading (Billion USD) 9.0 3, BME Spanish Exch. NASDAQ Nordic Johannesburg SE Korea Exch Exchange 2015 Total Value of Bond Trading in the World (Million USD) 2015 Oslo Bors Colombia SE Borsa İstanbul Shanghai SE Taipei Exch. Tel-Aviv SE SIX Swiss Exc. Santiago SE Moscow Exch. Irish SE National SE of India Buenos Aires SE Shenzhen SE BSE India Egyptian Exch. Euronext 282, , , , , ,838 85,178 56,670 47,372 40,838 11,434 9, , , , ,904 1,785,424 1,766,205 1,582,409 7 th Highest Bond Traded Value in the World 7,257, Borsa İstanbul A.Ş. All Rights Reserved Source: WFE, excluding repo 20

18 BORSA İSTANBUL MARKETS AND THE LISTING ENVIRONMENT Debt Securities Market Figures DEBT SECURITIES (Q4 2014) DEBT SECURITIES ( ) Publicly offered Qualified Investors Platform + OTC sales of QI Lease Certificates Asset-backed Securities TOTAL 141 issues USD 18,2 Bn 318 issues USD 12,1 Bn 25 issues USD 450 Mn 33 issues USD 200 Mn 517 issues USD 30,3 Bn Companies 77 Companies 109 Companies 135 Companies USD 17,2 Bn USD 21.5 Bn USD 30.3 Bn USD 29,1 Bn 2015 Borsa İstanbul A.Ş. All Rights Reserved 21

19 Listing and IPO Process in Borsa İstanbul 2015 Borsa İstanbul A.Ş. All Rights Reserved 22

20 LISTING AND IPO PROCESS IN BORSA İSTANBUL Prerequisites for a Successful IPO Vigorous Due Diligence Correct Market Timing Realistic IPO Price Determinati on Success! 2015 Borsa İstanbul A.Ş. All Rights Reserved 23

21 LISTING AND IPO PROCESS IN BORSA İSTANBUL Public Offerings in Numbers Public Offerings* ( ) * Secondary Public Offerings are included. Year Offering Figures Equity Debt Securities (avg.) 9 0, Year Derived Funds (USD in mn) Equity Debt Securities Total Borsa İstanbul A.Ş. All Rights Reserved 24

22 November-11 December-11 January-12 February-12 March-12 April-12 May-12 June-12 July-12 August-12 September-12 October-12 November-12 December-12 January-13 February-13 March-13 April-13 May-13 June-13 July-13 August-13 September-13 October-13 November-13 December-13 January-14 February-14 March-14 April-14 May-14 June-14 July-14 August-14 September-14 October-14 November-14 December-14 January-15 February-15 March-15 April-15 May-15 June-15 July-15 August-15 September-15 October-15 November-15 LISTING AND IPO PROCESS IN BORSA İSTANBUL BIST100 / BIST IPO Index Comparison BIST IPO BIST Borsa İstanbul A.Ş. All Rights Reserved 25

23 BORSA İSTANBUL Index Yields ROE International Brokerage Houses USD/TL Cross Exc. Rate DATE IPO % BIST 100 % BIST 30 % BIST DIVIDEND % Dec Dec Dec Dec Dec Dec , , , , Yearly Average - 14,4-5, ,7 Over 30 Brokerage Houses with International Capability Major International Brokerage Houses Return On Equity BIST All 13,36 BIST ,60 Deutsche Bank HSBC JPMorgan Société Générale The Royal Bank of Scotland Plc. Merrill Lynch Standard Chartered DATE USD/TL Dec.10 1,54 Dec.11 1,89 Dec.12 1,77 Dec.13 2,13 Dec.14 2,32 Dec.15 2, Borsa İstanbul A.Ş. All Rights Reserved 17

24 LISTING AND IPO PROCESS IN BORSA İSTANBUL Main Actors in an IPO CMB BROKERAGE/ INVESTMENT HOUSES BORSA İSTANBUL COMPANY INDEPENDENT AUDITORS CENTRAL REGISTRY AGENCY INVESTORS LAWYERS SETTLEMENT AND CUSTODY BANK 2015 Borsa İstanbul A.Ş. All Rights Reserved 27

25 LISTING AND IPO PROCESS IN BORSA İSTANBUL IPO Methods IPO of existing shares provides financing to shareholders for new investment opportunities IPO IPO through increasing capital is preferred to provide the necessary financing for the growth of the company 28

26 LISTING AND IPO PROCESS IN BORSA İSTANBUL IPO Steps Resolution of the company board for IPO Adaptation of the articles of association to capital market regulations Audit of the financial reports by an independent auditor Legal Report by lawyers Determination of the company value and sale price 2015 Borsa İstanbul A.Ş. All Rights Reserved 29

27 LISTING AND IPO PROCESS IN BORSA İSTANBUL IPO Steps (continued) Application to Borsa İstanbul and the CMB Borsa İstanbul and the CMB inspections and approvals Applications to the Settlement and Custody Bank (Takasbank) and the Central Securities Depositary Market determination of the shares that will be traded by the Borsa İstanbul Board Disclosure of the prospectus and the circular to the public Public offering and submission of sale results S Shares begin trading 2015 Borsa İstanbul A.Ş. All Rights Reserved 30 1

28 LISTING AND IPO PROCESS IN BORSA İSTANBUL Sample IPO Calendar Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Application to Borsa İstanbul and the CMB CMB and Borsa İstanbul audits Borsa İstanbul Board decision (regarding market determination) CMB prospectus approval Declaration of the prospectus and circulars Completion of the public offering process Reporting of sales results to the Exchange Beginning of trade for shares offered 2015 Borsa İstanbul A.Ş. All Rights Reserved 31

29 LISTING AND IPO PROCESS IN BORSA İSTANBUL Cost Breakdown of an IPO MAIN EQUITY MARKET (BIST STARS & BIST MAIN) 1% 2% 4% 8% 5% 9% 63% Brokerage and IPO Consultancy Fees Independent Audit Fees Legal Consultacy Fees CMB Fees CSD (MKK) Fees Borsa İstanbul Listing Fees Other Fees (Advertisement, Promotion, Other Consultancy Services etc.) EMERGING COMPANIES MARKET 79% 11% 4% Average cost of an IPO in the Main Equity Market 7% 0.34% 2% 0.38% 0.15% 7% Average cost of an IPO in the Emerging Companies Market 2015 Borsa İstanbul A.Ş. All Rights Reserved 32

30 LISTING AND IPO PROCESS IN BORSA İSTANBUL Equity Market QUANTITATIVE CRITERIA ($ amounts are meant for indicative purposes) BIST STARS BIST MAIN Min. Mkt. Value of Publicly Offered Shares Min Total MCAP Group 1 Group 2 Group 1 Group 2 TRY250 mn TRY100mn TRY50mn TRY25mn $85mn $35mn $18mn $9mn TRY1.000mn TRY400mn $350mn $150mn N/A N/A Positive EBITDA For two consecutive yrs. For two consecutive yrs. For two consecutive yrs. For two consecutive yrs. Min. Ratio for Publicly Offered Shares/Paid-in Capital Capital/Total Equity Ratio in the Last Audited Statements 5% 10% 15% 25% >75% >100% >100% >125% 2015 Borsa İstanbul A.Ş. All Rights Reserved 33

31 LISTING AND IPO PROCESS IN BORSA İSTANBUL Equity Market A corporate structure compatible with relevant legislation Independent Audit Minimum 3 Years of Operational Track Record Free from liquidation and/or bankruptcy Qualitative Listing Criteria Quantitative Criteria Free from any significant legal disputes Articles of Association in compliance with CMB Robust Financial Structure 2015 Borsa İstanbul A.Ş. All Rights Reserved 34

32 BORSA İSTANBUL MARKETS Emerging Companies Market ECM Designed for easy access Information Campaign for SMEs; Informational Meetings with Companies, Market Advisor System Reduced Listing Fees and IPO Costs KOSGEB Support Program (Covering ECM IPO costs until TRY) Relax regulation for Financial Tables Disclosure Relax regulation for Application and Admission Priority rights for Dividend payments No Independent Board Member Obligation Alternative Trading Methods - Continuous Auction with Market Maker - Single Price Auction (Call Market) Objectives Easier capital market access for SMEs: lower listing costs (1/10th of the EM Market) no quantitative limit authorized Market Advisors assist SMEs for listing and compliance with regulations lighter regulations (less frequent financial reporting, exemption from some BİST/CMB regulations) KOSGEB financial support program to cover IPO costs partially A more investable SME market segment new investment opportunities by facilitating listing of SMEs with high growth potential credible and liquid market with fair pricing mechanisms (Continuous auction with a Market Maker or Single Price Auction[call market]) 2015 Borsa İstanbul A.Ş. All Rights Reserved 35

33 LISTING AND IPO PROCESS IN BORSA İSTANBUL Equity Market vs. ECM Market Comparison EM Quantitative/Qualitative Criteria based on Borsa İstanbulListing Regulations Inspections by Borsa İstanbul Via Capital Increase and/or the Sales of Existing Shares Independently Auditod semi- Annual and Annual Financial Reports 1st and 3rd Quarter Financial Report (not audited independently) APPLICATION IPO POST TRADING ECM Net Assets > $3.7mn Net Sales Revenue > $1.85mn Inspections done by the Market Advisor Only via Capital Increase Independently Auditod Annual Financial Reports Semi-Annual Financial Report (not audited independently) 2015 Borsa İstanbul A.Ş. All Rights Reserved 36 12

34 LISTING AND IPO PROCESS IN BORSA İSTANBUL Debt Securities Market Public Oferring of Private Sector Debt Securities Compliance with the pertinent legislation Independe nt Audit 3 Years in operation No significant legal disputes Prerequisites Profit before taxes within the last 2 years Articles of Association in compliance with CMB rules Robust financial structure Minimum Offering size Owner s Capital Borsa İstanbul A.Ş. All Rights Reserved 37

35 LISTING AND IPO PROCESS IN BORSA İSTANBUL After becoming public... Public Disclosure Obligation Independent Audit Obligation Dividend Distribution Obligation Corporate Governance Establishing Committees Listed companies are obliged to disclose the information that are likely to affect the prices and investors decision fully and in a timely manner. Listed companies are obliged to disclose the financial statements as below: - Annual and semi-annual audited financials - Interim financials Companies may choose to distribute the dividend; - completely in cash, - completely as stocks, - partly in cash and in stocks, or: -retain the dividend Corporate Governance Principles Equality Transparency Accountability Responsibility - Investor Relations Department - Requirement to hire licensed personnel - Audit Committee - Corporate Governance Committee 38

36 What Borsa İstanbul may Offer to Foreign Companies? 2015 Borsa İstanbul A.Ş. All Rights Reserved 39

37 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Large Foreign Investor Base 90, % 25% 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, % Quantity of Stocks Held by Foreign Investors (Mn USD) Percentage 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20% 15% 10% 5% 0% Source: MKK Foreign Investors Share, Trade Volume, 2015 Monthly Average: 20% 2015 Borsa İstanbul A.Ş. All Rights Reserved 40

38 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Unsurpassed Liquidity and High Valuations Share Turnover Velocity Top 20 in the World (2015 Shenzhen SE Shanghai SE Borsa Istanbul GreTai Securities Market Saudi Stock Exchange - Tadawul Japan Exchange Group - Tokyo BME Spanish Exchanges Korea Exchange Dubai Financial Market The Stock Exchange of Thailand TMX Group Taiwan SE Corp. Deutsche Börse Hong Kong Exchanges Moscow Exchange Australian SE Oslo Børs Euronext SIX Swiss Exchange NASDAQ OMX Nordic Exchange Share Turnover Velocity (%) Top 20 in the World 2015 Source: WFE 2015 Borsa İstanbul A.Ş. All Rights Reserved 41

39 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Global Visibility and Prestige 39 asset management companies Wide financial media coverage 98 brokerage houses 2015 Borsa İstanbul A.Ş. All Rights Reserved 42

40 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Easy Access to Markets 2015 Borsa İstanbul A.Ş. All Rights Reserved 43

41 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? İstanbul s Vision A REGIONAL HUB & GLOBAL ACTOR İstanbul İstanbul International Financial Center (IFC ISTANBUL) Project: Bridges West to East 2015 Borsa İstanbul A.Ş. All Rights Reserved 44

42 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Access to Capital Renovation Investments Capacity Increase Investments Mergers & Acquisitions Access to New Markets R&D Investment Access to Long term Financing Increased Brand Awareness Low Financing Cost 2015 Borsa İstanbul A.Ş. All Rights Reserved 45

43 WHAT BORSA İSTANBUL MAY OFFER TO FOREIGN ISSUERS? Global Exposure, Credibility & Prestige Increased Media Interest Customers International Funds Suppliers Credit Agencies 2015 Borsa İstanbul A.Ş. All Rights Reserved 46

44 Borsa İstanbul Marketing and Sales Department T F