Going Public in Turkey - Part One Of A Series: Overview

"Going public" through an initial public offering of its shares ("IPO") can be an efficient source of direct funding for many joint stock companies. The means in which companies may offer their shares to the public may vary according to the particular circumstances of each company. For example, a company may offer its current shares (owned by current shareholders) to the public in the classic IPO format, or may go public through a capital increase (whereby the pre-emption rights of the current shareholders are not exercised).

A public offering of shares requires a vast amount of preparation. Articles of association must be amended in line with the requirements of the Turkish Capital Markets Board ("CMB") and financial statements must be prepared in accordance with the standards applicable to publicly traded companies. An application for prior approval regarding the public offering which includes the offering circular is submitted to the CMB as a first step. If such