Company Public Offering Consultancy

Şirket Halka Arz Danışmanlığı

Company Public Offering Consultancy is defined as the general call made by any means for the purchase of Capital Market instruments and the sale of shares made after this call. A public offering is the sale of a company’s shares to investors through calls and announcements to be traded on the Borsa Istanbul Stock Market.

We think that if companies decide to finance their growth with public offering, it will be of great benefit to receive consultancy services before IPO and brokerage firm applications.

Company Public Offering Consultancy

Companies often need substantial capital to finance their targeted growth. This capital requirement can be met by offering company shares to the public. Such a transaction provides an opportunity for existing shareholders to sell a portion of their investment.

As your lead advisor, we are able to provide you with all advisory services in the process of offering your company shares to the public, without directly interfering with the share sales and without worrying about profiting from the stocks, that is, without any conflict of interest. Thus, we are able to represent the interests of both shareholders and management at all times.

  • We advise shareholders and/or management on whether an IPO is appropriate or under what circumstances it might make sense,
  • We are preparing you and your company for a successful IPO,
  • As the project manager, we coordinate all parties involved (shareholders, management, legal advisers, auditors, communications consultants and other potential parties) and guide you from the beginning of the transaction process to the first day of the transaction.

Why Do Companies Want to Offer to Public?

An IPO is primarily a money, that is, a source of financing. In addition, companies provide liquidity, institutionalization, globalization, promotion and reputation through public offerings.

Companies use different financing methods according to the sector in which they operate and the status of the company. Each financing method has its own advantages and disadvantages. If public offering is preferred as a financing method, companies offer their shares to the public at a premium price and obtain a lower cost and long-term resource compared to alternative financing methods. In addition, companies can meet their financing needs by making use of loans and issuing debt instruments at more affordable costs by giving their shares as collateral after they go public and their shares are traded on the Stock Exchange.

How Does the Public Offering Process Work?

An institution that takes the decision of public offering must first make preliminary preparations. A team should be formed that will deal only with this job and ensure coordination with the relevant units within the company and then with the financial advisor and intermediary institution to be selected. We can summarize the next steps as follows:

Selection of Financial Advisor and Brokerage House

A financial advisor can be appointed to manage the entire process. In order to realize the public offering of the shares, a contract must be made with the brokerage house authorized by the Capital Markets Board. After the brokerage house is selected, the public offering program is made and, if necessary, corrections are made in the company’s articles of association. The brokerage house carries out the work to determine the share value, the relevant prospectus and application documents are prepared.

Application to Borsa Istanbul and CMB

An application is made to the Capital Markets Board for approval of the public offering prospectus with the authorized intermediary institution, and to Borsa Istanbul for a quota. Draft Prospectus will be uploaded to the website in the next 5 days. Thus, investors can access information about the company going public.

Company Investigation by Borsa İstanbul and CMB Experts

After the application, Borsa İstanbul and CLUB experts examine the activities and legal status of the Company and analyze the independently audited financial statements.

Approval of IPO Prospectus

CMB examines the implementation of the prospectus and its compliance with the legislation. The prospectus approved for the public offering is approved by the Capital Markets Board and is published on the company’s websites and the consortium members who mediate the public offering.

Public Supply and Bookbuilding

The public offering process is initiated by the company’s shares, intermediary institution or, if it is established, by a consortium at the prices and dates determined in accordance with the principles in the public offering prospectus, pursuant to the CMB regulations. Investors submit their requests to intermediary institutions and banks. The process is completed by the consortium leader according to the principles of public offering.

Initiation of Trading and Gong Ceremony

Following the successful completion of the public offering, the company’s shares begin to be traded in the relevant market of the Stock Exchange, following the announcement made on the Public Disclosure Platform. Additionally, a gong ceremony is held at the Exchange on the first trading day of the Exchange.

Public Offering Service

To the companies that started the public offering, on the following issues; We provide support at both the strategic level and the implementation stages.

Developing the Public Offering Strategy: It consists of determining the purpose of the public offering, determining the strategic factors and important criteria, and completing the company valuation study.

Preparation of the Implementation Plan: It consists of determining the management principles, taking the necessary decisions, completing the legal proceedings, following the stock market, making sector and competitor analyzes, preparing the technical procedure for the public offering and market maker.

Reviewing the company’s “shareholding structure, subsidiaries, corporate structure and human resources profile, especially financial departments, company’s financial system and “management structure” internal audit system, company “management procedures, and making necessary preliminary preparations, As part of an appropriate restructuring for IPO consists of.

The prospects will act as an intermediary: consortium leader consulting in the Selection and Preparation of consortium members, studies on painting activities for the launch before the “research report” with the CMB and ISE, audit activities, advertising and public offering consortium leader, and “prospectus – Preparations for the application consists of the “prospectus”.

Review of Strategic Factors and Decision Making: It consists of reviewing and deciding on strategic factors such as “timing”, “pricing” and “distribution policy” in order for the IPO to be successful.

Preparation of Independent Audit and Auditor’s Reports: Obligation of independent audit of financial statements during public offering, Independent audit of annual financial statements of the previous 3 years and, if necessary, independent audit of last interim comparative financial statements. It consists of an audit of the pro forma financial information in the IPO prospectus and, if included, the appropriateness of profit estimates.

Obligation for the independent audit of the financial statements after the public offering: It consists of the independent audit of the annual financial statements of each operating period and the limited independent audit of the comparative financial statements of the 6-month interim period.

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