Another IPO-bound company in Turkey files for bankruptcy protection
Another company awaiting its initial public offering (IPO) on Borsa Istanbul has filed for bankruptcy protection. According to local media reports, Infinia Advanced Elektronik is the latest company to initiate such proceedings in the run-up to a planned IPO.
The engineering firm, which previously operated under the name Infinia Muhendislik, received approval from the competent court on July 1 for the bankruptcy protection proceedings (concordat).
On July 13, the sukuk intermediary firm Hedef Varlik Kiralama announced that, as a result of the court order, Infinia would default on two bonds (TRDHDFV82623 and TRDHDFVE2615). Also on the same day, Astra Portfolio Sukuk Investment announced that it would set aside provisions for the affected bonds in its portfolio.
Pakun Seeks Insolvency Protection for the Second Time
As early as July 3, the flour manufacturer Pakun—which was also awaiting approval for its initial public offering (IPO)—filed for a concordat—Turkey’s court-supervised debt restructuring process—for the second time.
Pakun had filed for an IPO in October 2024 and received court-ordered creditor protection for the first time in January 2025. This initial proceeding was concluded in June 2026, before the company filed a new application shortly thereafter.
A Warning Sign for the IPO Market
The surge in insolvency protection proceedings among companies preparing for an IPO highlights the growing liquidity pressure on small and medium-sized enterprises in Turkey.
Last year, the IPO market on Borsa Istanbul experienced a boom driven by retail investors. Faced with high interest rates, many companies rushed to go public to raise equity capital and reduce their reliance on bank loans. However, recent developments suggest that for some companies, access to the capital market came too late.
Under Turkish commercial law, filing for a concordat temporarily protects a company from foreclosure and asset seizures. At the same time, it gives management the opportunity to restructure its liabilities under the supervision of a court-appointed administrator. The protection period initially lasts up to three months and can often be extended to more than a year.
Questions Regarding Pre-IPO Due Diligence
For investors and regulatory authorities, the current cases raise questions regarding the quality of due diligence reviews prior to IPOs, financial reporting, and the financial stability of small and medium-sized enterprises.
While strong demand from retail investors for new public offerings has, to some extent, masked weaknesses in financial statements in the past, the more restrictive credit environment and higher financing costs are already exposing the financial problems of many companies even before their planned initial public offerings.
The cases of Infinia and Pakun are therefore likely to lead to more intensive scrutiny of the debt, liquidity, and capitalization of companies whose IPO prospectuses are to be approved by the Turkish Capital Markets Board (SPK).
As recently as July 19, IntelliNews also reported that the list of companies already listed on Borsa Istanbul that have become insolvent has continued to grow.