Infinia Advanced Elektronik has become the latest company in the queue for a Borsa Istanbul initial public offering (IPO) to file for bankruptcy protection, according to local media reports.

The engineering company, previously known as Infinia Muhendislik, received the court ruling for the process on July 1.

On July 13, Hedef Varlik Kiralama, an intermediary company that issues sukuk papers, said that Infinia would default on its two papers (TRDHDFV82623, TRDHDFVE2615) following the ruling. Also on that day, Astra Portfoy sukuk investment said that it would allocate provisions for the papers in question that it holds in its portfolio.

Pakun goes twice

Previously, on July 3, Pakun, a flour producer that was also awaiting regulatory clearance for an IPO, entered the same insolvency protection process, known as concordato (Turkey’s court-supervised debt restructuring regime) for the second time.

Pakun applied for IPO in October 2024 and received its first concordato ruling in January 2025. The company’s first concordato process was ended by the court in June 2026 before the issuing of the second ruling.

Filings raise uncomfortable questions

The back-to-back filings by companies actively pursuing stock market debuts underline the severe cash-flow pressures facing mid-cap Turkish businesses.

In the past year, Borsa Istanbul’s IPO market has experienced a retail-driven boom, with companies rushing to go public to secure non-debt equity financing amid soaring interest rates. However, the recent distress seen among prospective debutants suggests that, for some, capital market relief has arrived too late.

Under Turkey’s commercial code, a concordato filing grants a debtor temporary immunity from legal execution and asset seizures, allowing management up to three months, often extendable to over a year, to restructure liabilities under a court-appointed trustee.

For equity investors and market regulators, the filings raise uncomfortable questions regarding pre-IPO due diligence, financial disclosures and the vulnerability of mid-tier firms navigating prolonged monetary tightening.

While retail demand for new listings previously masked balance-sheet fragilities, domestic banks' tighter credit lines and elevated borrowing costs are leaving weaker balance sheets exposed long before prospective equity can be raised.

The distress at both Infinia and Pak is expected to prompt closer scrutiny regarding corporate debt profiles and working capital adequacy for draft prospectuses that receive the green light from Turkey’s capital market boards SPK.

On July 19, Intellinews reported that the list of defaulters already traded on Borsa Istanbul was also lengthening.