CMB updated: IPO conditions have changed

In an announcement made on the Capital Markets Board's (CMB) website, the updated amounts subject to revaluation were shared.

Accordingly, in accordance with the provisions of the Capital Markets Law No. 6362 regarding acts requiring administrative fines, the fines have been increased by 58.46 percent, with the ranges adjusted to between 246 thousand 511.47 liras and 3 million 81 thousand 378.30 liras, 61 thousand 607.66 liras and 616 thousand 263.62 liras, and 5 thousand 249.78 liras and 131 thousand 244.50 liras, depending on the penalty.

The range for administrative fines for market-distorting actions has also been set at between 246 thousand 511.47 liras and 6 million 168 thousand 483.34 liras.

With the revaluation, IPO conditions have also changed. Accordingly, if the market value of shares to be offered to the public for the first time—calculated based on the IPO price, excluding additional sales—is below 500 million liras, 25 percent of the shares to be offered will be held ready for sale by completely restricting the shareholders' pre-emptive rights.

For partnerships whose shares are to be offered to the public for the first time, if the market value calculated based on the IPO price (excluding additional sales) is below 400 million liras, there will be a mandatory underwriting obligation for brokerage firms to purchase all unsold shares at the IPO price. If the value is between 400 million liras and 800 million liras, the obligation will cover the entire portion of unsold shares up to 400 million liras, and half of the portion exceeding that amount.

With the update, companies to be offered to the public are required to have a turnover of 750 million liras and an asset size of 1 billion 500 million liras as of the end of 2023.

News Source: AA