Article 5 of the "Equity Communiqué No. VII-128.1" published by the Capital Markets Board (CMB) sets forth the prerequisites to be complied with prior to the initial public offering of the shares of non-publicly traded companies, and companies are required to fulfill these conditions in their initial public offering.
The prerequisites to be complied with before the initial public offering of the shares of non-public companies are as follows:
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The capital must be fully paid,
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There are no value increase funds and similar funds arising from the transfer of assets to fair value within the two years prior to the application date, except for the funds permitted by the legislation,
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Except for investment trusts, total assets and net sales revenue are above the specified limits according to the independently audited financial statements of the last two years prior to the application date;
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2021
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2022
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Total Assets
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TL 180,000,000
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TL 270,000,000
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Net Sales Revenue
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TL 300,000,000
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TL 450,000,000
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If the company has been transformed into a joint stock company within two years prior to the application date, the equity items before the transformation should be shown as separate items in the post-transformation balance sheet without aggregation and a financial advisor report should be issued to determine this issue,
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According to the most recent financial statements to be included in the prospectus, the ratio of non-trade receivables from related parties to total receivables does not exceed twenty percent or the ratio to total assets does not exceed ten percent,
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In the event that the corporation whose shares will be offered to public for the first time has unsold shares, the authorized institutions acting as intermediary for the sale shall undertake to the corporation that they will purchase these shares at the rates specified in subparagraph 7 of Article 5 of the Communiqué on Shares.