JPMorgan Is Banking on Pent-Up Demand to Reignite #Turkey IPOs - Bloomberg

JPMorgan Is Banking on Pent-Up Demand to Reignite Turkey IPOs - Bloomberg:

JPMorgan Chase & Co. expects Turkey’s capital markets to come back to life as inflation and interest rates decline, reigniting investor interest as the economy stabilizes.

“IPO demand is accumulating in Turkey and when markets normalize, there should be initial public offerings, secondary public offerings and accelerated book buildings,” Mustafa Bagriacik, chief executive officer of the lender’s Istanbul unit, said in an interview. “Demand and risk appetite for Turkey will be there once predictability is there; because investors are generally underweight Turkey.”

Initial public offerings have just about ground to a halt, with only three share sales this year worth $23 million, as economic growth stalled, and in the wake of the lira’s crash to an all-time low at the end of 2018. The currency has since rebounded and is the best-performing emerging-market currency this half, while new central bank governor Murat Uysal cut rates by a record last month, citing an improved inflation outlook.