The Borsa Will Drop Two Zeros! Hakan Atilla, CEO of Borsa Istanbul, announced that two zeros will be removed from the BIST 100 Index on April 27, 2020. He also stated that work continues to prepare the exchange for an initial public offering, which could take place in the second half of 2020. Atilla said preparations to redenominate the index by removing two zeros are underway and that testing would begin on March 9, 2020.
Following the testing phase, the redenomination will be implemented definitively on April 27, 2020. In an informal meeting with financial press representatives, Atilla reviewed recent market developments. He said that after the two-zero redenomination the index level will be around the 1,200s.
Atilla reminded listeners that a similar zero-removal took place in 1997. He noted that without such adjustments the index value today would be on the order of 10–12 million. He also emphasized that the BIST index has risen recently and that the market capitalization of listed companies has increased by roughly $38–40 billion. Atilla added that the exchange still has room to grow.
Borsa Istanbul Is Relocating!
Borsa Istanbul Is Relocating! Atilla said the exchange intends to move from the European side of the city to the Istanbul Financial Center on the Asian side. He noted they have discussed the plan with the Istanbul Financial Center’s owner, the Turkey Wealth Fund. While they do not require an excessively large space, Atilla emphasized the need for a secure area suitable for storing gold. He also mentioned that their current premises are leased and that a move could take place in 2022 or 2023.
When Will the Exchange Go Public?
When Will the Exchange Go Public? Atilla explained how the public offering process would work for Borsa Istanbul — a company that has been discussed for listing for several years. He said the exchange should be ready for a public offering before year-end, but stressed that geopolitical developments and market conditions will play a major role in timing. Atilla indicated that an IPO could be planned for the second half of the year.