Cost of Public Offering

The main elements of the cost of going public to companies can be summarised as follows:

1. Fees to Intermediary Institutions

During the public offering process, the issuer company pays a commission as a proportion of the total public offering amount, depending on the amount of the public offering and the type of brokerage service provided. These fees are determined on the basis of the brokerage agreement between the intermediary institution leading the public offering and the other consortium members, if any. The issuer pays a certain commission rate to the brokerage houses that offer the shares to the public.

2. Fees paid to the Capital Markets Board

The fees payable to the Capital Markets Board (CMB) shall be determined as a registration fee of two per thousand (0.2%) of the issue value of the shares to be registered and offered for sale. However, in the initial public offering of the shares, a fee of one per thousand (0.01%) shall be applied on the difference between the initial public offering price and the nominal value of the shares. A Board fee of two per thousand (0.02%) is charged on the nominal value of the shares that will not be sold. For capital market intermediaries to be traded under the Emerging Companies Market (ECM), the registration fee is one-tenth of one per cent (0.01%).

3. Fees paid to Istanbul Stock Exchange

A listing fee of one thousandth (0.1%) of the nominal value of the company's capital is paid to Borsa Istanbul. Companies that will be traded in the ECM’shall pay a fee of 0.01% when they are accepted to the ECM List. In the following years, these companies pay an annual fee of 0.0025% on the nominal amount of the shares listed on the ECM List. The ECM companies were exempted from these Exchange fees until 2013.

4. Fees paid to the Central Registry Agency

The annual entrance fee to the Central Registry Agency (CRA) is one thousandth (0.1%) of the capital of the publicly offered company, and this fee should not be less than TL 2,000 and not more than TL 50,000. The CRA fees for the companies to be traded on the ECM’ have been reduced, and the fee of 0.01% (0.1 per cent) of the capital of the company to be traded on the ECM’ shall not be less than TL 2,000 and more than TL 50,000;i (1 in ten thousand) and 0.005% (5 in one thousand) of the nominal amount for dematerialised share issues.

5. Other Cost Elements

In the course of the public offering, other cost elements such as fees paid to independent auditing firms, publicity and advertising expenses in Turkey and abroad are also incurred. In addition, companies to be traded in the ECM’s are obliged to pay the fees determined for market consultancy services in accordance with the agreements made with market consultants.

These cost elements are part of the financial burdens that companies will face during the IPO process, and each element may vary depending on the scope of the IPO and market conditions.