The commencement of trading of a company's shares on Borsa Istanbul is not just an instantaneous event. It is a long process covering the preparations before the public offering, the realisation of the public offering and all the steps to be taken afterwards. In order for companies to obtain maximum benefit from public offerings, this process should be managed effectively.
Companies that decide to go public may generally prefer not to apply for advisory services in the pre-IPO period. However, IPO advisory services provided by capital market advisors or intermediary institutions are of great importance for companies to properly navigate this process. Unfortunately, many companies reach agreements directly with brokerage houses close to the IPO date and skip obtaining IPO consultancy.
This approach may cause companies to be deficient in legal, administrative processes and preparation management and may often lead to postponement of the IPO date due to the problems encountered. Such deficiencies may sometimes cause the company to fail to achieve the expected benefit from the public offering or to abandon the public offering.
Instead, it is observed that companies that carry out the IPO process in cooperation with consultants and initiate this process early achieve more successful results and fully realise the benefits they expect from the IPO. Therefore, companies should obtain consultancy services as soon as possible before starting the public offering process and should start this process well before the targeted public offering date.
Although the IPO process may vary from company to company and according to market conditions, it usually covers a period of 6 to 18 months. Therefore, it is extremely important to start an early consultancy process so that the IPO can be made on time and everything goes well until the target date.