Benefits

It is possible to summarise the various advantages that companies can obtain by going public as follows:

Providing Financing

Increased Liquidity

Institutionalisation

Domestic and International Promotion

Increased Credibility

Globalisation Opportunities

Secondary Public Offering Opportunities

Providing Financing

Public offering is one of the most effective ways for companies to meet their capital needs. Companies start to be traded in capital markets by offering their shares to the public and obtain an important source of financing in this process.

Although there are different reasons that influence each company's IPO decision, this method generally provides a lower cost financing compared to bank loans. The proceeds from the public offering do not have to be repaid, which creates a long-term and sustainable financing opportunity compared to the use of loans.

In addition, there are also ways to provide additional financing after the public offering, such as pledging company shares as collateral and issuing debt securities. This gives companies both flexibility and financial sustainability.

Increased Liquidity

Company shares offered to the public and traded in organised markets become transparently tradable depending on the supply and demand in the market. This gives the shares liquidity and at the same time allows existing shareholders' shares to be easily converted into cash.

Institutionalisation

Many companies in Turkey operate as family businesses and the level of institutionalisation of these companies is generally not at the desired level. However, the public offering process provides an important opportunity for companies to adopt corporate governance practices and accelerate institutionalisation.

Going public not only ensures the formation of a corporate structure, but also increases the sustainability of companies. This process ensures that companies are transferred to future generations in a more robust manner and become a longer-lasting structure.

Domestic and International Promotion

Financial and operational information of listed companies is regularly disclosed in accordance with Capital Markets Board regulations and the principle of public disclosure. This information is communicated to domestic and foreign investors through various media channels.

Greater recognition of companies at home and abroad opens doors for collaborations, joint ventures and new commercial opportunities. At the same time, it contributes to raising awareness of the company's products and services in global markets.

Increased Credibility

The fulfilment of financial transparency and regular reporting requirements by publicly listed companies increases their creditworthiness. This situation provides a great advantage in terms of using loans with more favourable conditions and access to financial support.

Globalisation Opportunities

Public offering facilitates the opening of companies to global markets. In particular, the opportunity to have securities quoted on foreign stock exchanges enables companies to reach foreign investors. This process opens new doors for foreign partnerships, joint venture projects and additional financing opportunities.

Secondary Public Offering Opportunities

Companies that have completed their primary public offering have the opportunity to make a secondary public offering by utilising the value of their shares traded on the stock exchange. This method enables companies to raise additional capital and obtain the financing they need in line with their growth targets.