Publications
February 10, 2025

IPOs Vision and Roadmap

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We define an initial public offering (IPOs) as the process in which a joint-stock company offers its shares to investors through a public call, ensuring compliance with the listing requirements of Borsa Istanbul’s STAR MARKET, MAIN MARKET, or EMERGING COMPANIES MARKET. Upon completion of this process, the company transitions from private ownership to acquiring the status of a publicly traded company. Prior to the IPOs, the shares of the company are typically held only by its founders, early investors, or, in some cases, employees. Following the IPOs, the company’s shares are traded on the stock exchange and become accessible to all investors.

An IPOs is regarded as a significant method for capital raising and offers advantages such as enhanced prestige and the objective determination of the company’s value. After the IPOs, the company’s data are continuously disseminated to domestic and international investors via Borsa Istanbul’s Points of Presence (PoP) in London and authorized infrastructure providers to key global financial centers through data distribution agencies.

The IPOs represents a turning point, allowing the company to attract new investors and enabling long-term growth. Additionally, it provides an opportunity for existing shareholders to liquidate a portion of their holdings. The IPOs process involves a series of complex legal and financial steps, including a thorough review of the company’s financial position, business plan, and future goals. An IPOs prospectus must be prepared and subsequently submitted for approval to the Capital Markets Board.

Roadmap

The IPOs journey is an exciting venture for companies; however, ensuring its success necessitates a critical preparation phase. Companies should engage in a comprehensive pre-IPOs process, carefully analyzing their financial statements, business plans, and market positioning. This preparation maximizes the company’s value and minimizes potential risks during the IPOs.

  1. Define your company’s goals for the next 5 years. Develop a 5-year projection and business plan. Where do the executives and shareholders envision the company? Structure your strategy. How will the funds raised through the IPOs contribute to the company? Why should investors choose to invest in your company?
  2. Streamline the company’s assets, partnerships, and subsidiaries. Exclude assets unrelated to the company’s operations. Simplify cross-shareholdings, if any. Move non-operational assets and real estate outside the company structure.
  3. Select your IPOs advisors carefully. Your IPOs advisor will coordinate the entire IPOs process, managing at least 100 internal and external stakeholders. A poor choice could result in:
    • (i) Failure to execute the IPOs, damaging the company’s reputation, or
    • (ii) The company’s true value not being accurately represented.
  4. Engage a reputable and credible independent audit firm. Ensure your financial statements undergo independent auditing. If there are unrecorded sales, document them. Choose your IPOs advisor and legal counsel, and conduct a pre-legal audit of the company. Initiate preliminary discussions with brokerage firms that will conduct the IPOs.
  5. Familiarize all executives and employees with corporate governance principles set by the Capital Markets Board. Distribute and adopt these principles across the company before the IPOs.
  6. Organize informational meetings with potential investors, funds, family offices, and creditors. Share the goals and vision of your company and its shareholders. Communicate the initiation of your IPOs journey discreetly without creating binding commitments among stakeholders.
  7. Select a corporate communications and social media agency. Strengthen your company’s brand and visibility.

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