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Türkiye’s Capital Markets Board publishes new monetary thresholds for public offerings

January 2023 – The Board, in its decision numbered 77/1900 (published in the bulletin numbered 2022/74 dated 30 December 2022), has re-evaluated the threshold amounts regulated in Turkish capital market legislation for the year 2023. Some of these new thresholds include the conditions that companies must meet for initial public offerings.

In accordance with the re-evaluated thresholds:

  • If the market value of the shares to be offered to the public, excluding additional sales, of companies whose shares will be offered to the public for the first time is below TL 231,903,989, shares corresponding to 25% of the nominal value of the shares should be kept ready for sale by completely restricting the shareholders' right to buy new shares.
  • Companies that wish to switch to the registered capital system must have a minimum capital of TL 30,000,000.
  • Intermediary institutions are required to underwrite the below-specified portion of shares and submit the underwriting agreement to the Board if the market value of the shares to be offered to the public for the first time, excluding additional sales, does not meet the stated thresholds:
    • all of the unsold shares, if the market value is less than TL 150,000,000; and
    • if the market value of shares is between TL 150,000,000 and TL 250,000,000, all of the unsold shares up to TL 150,000,000, and half of the remaining unsold shares.
  • The financial statements of companies whose shares will be offered to the public for the first time, and which have undergone independent audit, must confirm that
    • their total assets are not less than TL 270,000,000 for 2021 and TL 450,000,000 for 2022, and
    • their net sales revenue is not less than TL 180,000,000 for 2021 and TL 300,000,000 for 2022.

For more information, please contact your Capital Markets Team in Türkiye

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