Public Offering Process

The public offering of company shares and the trading of these shares on Borsa Istanbul is not a one-step process, but rather a comprehensive and meticulously managed process. This process covers the preparation stages before the public offering, the realisation of the offering and the activities to be carried out afterwards. Each of these steps must be planned and managed in detail in order for companies to maximise the benefits of an IPO.

Pre-Public Offering Preparation Process

Many companies planning to go public tend to start working directly with a brokerage firm shortly before the IPO date. However, this approach often leads to problems due to insufficient preparation. The lack of the necessary legal, administrative and operational arrangements may cause the process to be delayed, the expected benefits may not be achieved or sometimes the IPO may be cancelled altogether. Therefore, it is critical for companies considering an IPO to seek professional support from experienced IPO advisors or related experts at an early stage.

The length of the IPO process varies depending on the structure of the company and market conditions, and generally takes between 6 and 18 months. However, in some cases, this period may be longer. Therefore, it is of great importance to determine the targeted IPO date and to act early in order to complete the process as soon as possible.

Steps to be Taken Before Public Offering

1. Establishment of the Preparatory Committee

At the beginning of the public offering process, a preparatory committee should be established, especially consisting of the company's finance and public relations unit managers. This committee should be in constant communication with the consultants and hold regular monthly meetings to assess the situation. The committee's areas of responsibility and timetable should be clearly defined.

2. Legal Status Analysis

Legal disputes faced by the Company, its subsidiaries and affiliates should be examined in detail and the impact of these disputes on operations should be analysed. Potential risks should be identified and solutions should be worked on.

3. Completion of Required Documents

All permits, licences and documents required for the Company and its subsidiaries to continue their operations should be checked and legal processes should be initiated immediately to complete the missing documents. These transactions should be completed in a manner that will not delay the public offering process.

4. Evaluation of the Shareholding Structure

The most appropriate structure for public offering should be determined by analysing the existing shareholding structure and subsidiary/affiliate relations of the company in detail. It should be clarified with which organisational structure it would be more advantageous for the company to go public.

5. Organisation of Accounting System and Financial Statements

The accounting system and financial statements of the company should be harmonised with the Capital Markets Board (CMB) regulations. For this purpose, experienced independent audit firms should be engaged in line with the size and needs of the company and independent audit processes should be initiated without losing time.

6. Preparation of the Articles of Association

Before the public offering date, the articles of association of the company must be harmonised with the Capital Markets Law. In this direction, a draft amendment to the articles of association should be prepared and submitted to the CMB for approval and necessary authorisations should be obtained.

7. Company Valuation and Selection of Intermediary Institution

Before starting negotiations with intermediary institutions, a comprehensive valuation study should be conducted to determine the value of the company. An accurate reflection of the company's financial position and future potential is a factor that directly affects the success of the IPO.

Strategic Importance of IPO

Successful completion of the IPO process not only provides companies with a low-cost source of financing, but also constitutes an important step in achieving their institutionalisation and corporate governance goals. This process helps the company to increase its transparency standards, strengthen its brand value and gain investor confidence.

The key to achieving success on the targeted dates is for companies to meticulously plan the process management and receive expert support while implementing the IPO decision.