A survey on the application of Turkish investment banking system

The aim of this study is to expose the establishment reasons, goals and activities o f investment banking in Turkey, after examining this system in general. Public offerings is the most fundamental activity of investment banking. Therefore, a particular emphasis was placed on public offerings and the comparison of steps involved in this activity between the world and Turkey was discussed. Legislative arrangements about investment banking and the public offering of securities were stated flatly. In order to discover the practice o f public offerings in Turkey, two case studies were selected, namely “ Dardanel Önentaş, Inc.” and “ Mutlu Akü, Inc.” . While choosing these two cases, the objective was to cover different methods most widely used in Turkey, both in the investment banking activities and pricing the share of the issuing company, which is the quintessence of a public offering. Thus, price determination o f the underwriters and the results of these pricing techniques were examined specifically. Findings of this study, and the comparative evaluation o f two case studies provide valuable information on how investment banking activities are implemented in Turkey. For the reasons stated in this study, it is expected that this branch of banking will gain widespread use in near future, in Turkey.