New Year, New IPO Conditions

Recent Developments

With its decision published in the Capital Markets Board Bulletin dated December 29, 2023 and numbered 2023/82 (the "Decision"), the Capital Markets Board ("CMB") amended the financial criteria, specifically the monetary thresholds, that companies must meet in order to go public. The re-evaluated threshold amounts tighten the conditions for initial public offerings.

What Does the Decision Say?

Pursuant to the Decision:

1. The paid-in capital of the companies that will adopt the registered capital system (kayıtlı sermaye sistemi) cannot be lower than TRY 100,000,000.

2. The companies will need to meet the following criteria in order to go public:

• The total assets of the company must not be lower than TRY 450,000,000, and its net sales revenue must not be lower than TRY 270,000,000, pursuant to its 2022 year-end financial statements (prepared and audited in accordance with the CMB regulations);