After Processing

For a company, going public is an important step, not only to raise capital, but also to bring about many financial and operational changes. The post-IPO period is the beginning of a new era for companies. This article will focus on the new challenges and opportunities that companies may face after an IPO and the regulations that they need to adapt to.

1. Transparency and Public Disclosure Obligations

A company that conducts an IPO becomes a public company and is therefore subject to a much higher level of transparency and accountability requirements. The obligation to report the financial status of the company on a regular basis arises. The Capital Markets Board (CMB) and Borsa Istanbul require listed companies to audit their year-end financial statements and make regular public disclosures. In addition, the company is required to announce to investors and the public important developments, changes in management, mergers and acquisitions, etc.

These reporting obligations require the company to have a more professional management and audit infrastructure. Financial data, management decisions, strategic objectives and many other issues should be regularly disclosed to the public. This increases confidence in the company, but also imposes a significant managerial burden.

2. Investor Relations Management

After going public, it is of utmost importance that companies manage their relations with investors in a smooth manner. Once a company starts trading on the stock exchange, it has to manage its relationships with investors, analysts and other market participants more carefully. This is an important factor that can affect the company's stock price.

Investor relations is not only about providing accurate information to investors; it also plays a critical role in clearly articulating the company's strategic vision and winning the trust of potential investors. Investors should be regularly informed about the company's financial health, growth targets, sectoral situation and overall strategy. In addition, holding regular meetings with the company's shareholders, understanding their expectations and providing them with up-to-date information about the company's development is of great importance for long-term success.

3. Risks Related to Market Fluctuations and External Factors

After an IPO, companies become more sensitive to market fluctuations. Macroeconomic factors such as stock market conditions, economic crises, interest rates and foreign trade can directly affect a company's performance. Stock prices depend not only on the internal success of the company, but also on general economic conditions and industry developments.

However, while companies are generally accustomed to managing the rise or fall of stock prices at a certain level, it should be remembered that market movements are often uncontrollable. At this point, it is important for companies to shape their financial and operational strategies according to long-term goals rather than short-term fluctuations. External factors such as economic crises, high inflation and exchange rates can strain the financial position of publicly traded companies.

4. Second Public Offerings and the Search for New Capital

After going public, companies may look for new ways to raise the capital they need. While an initial public offering may initially be a means of financing the company's growth, it may be possible to raise additional capital through a second public offering or new debt issuance in the future in line with the company's evolving needs.

Secondary public offerings provide financing to achieve a company's growth targets, to realise new projects or to retire existing debt. However, secondary public offerings can often result in dilution of shareholder ownership. This would mean that the proportion of shares held by existing shareholders would be diluted and could lead to reputational damage among shareholders. The company should explain the risk of share dilution to its investors and manage these risks well.

5. Competition and Market Strategies

Another important effect of going public is the company's competitive position. A publicly listed company attracts more attention and this may cause other players in the industry to be more cautious about the company's strategies. Companies may need to focus more on innovation, marketing strategies and operational efficiency to increase their competitiveness in the market.

Publicly listed companies may often have to implement their growth strategies more aggressively. These strategies may include developing new products and services, increasing existing market share or expanding into international markets. Such strategic moves can improve the company's performance on the stock exchange and create value for shareholders.

6. Financial Changes and Compliance Periods After the IPO

After an IPO, there may be some changes in the governance structures of companies. These changes may vary depending on the company's size and complexity and the IPO process. After going public, the company may need to have a more professional management structure. This means standardising the composition of the board of directors, making new strategic decisions and strengthening the company's audit processes.

In addition to oversight and compliance requirements, public companies are subject to audits by various regulatory bodies. These institutions require the company to comply with market regulations, tax laws and other financial regulations. At this point, it is important for the company to establish a compliance department and adapt to any legal and regulatory changes.

Going public is a great opportunity for a company, but it also brings with it significant responsibilities. After going public, companies may face a number of challenges such as financial reporting, investor relations management, sensitivity to market fluctuations, the need for a second public offering and achieving strategic objectives. In order to successfully navigate this process, a strong governance structure, an effective risk management strategy and a transparent communication policy must be developed.