Decrease of monetary thresholds for IPOs for Certain Sectors

Decrease of monetary thresholds for IPOs for Certain Sectors

Due to the difficulties for certain sectors to reach the increased financial thresholds while considering an initial public offering (IPO), on 28.03.2024, the Capital Markets Board (Board) has announced a principle decision regarding the decrease of the monetary thresholds, which was increased at the end of 2023 for certain companies operating in the:

  • renewable energy sectors,
  • petrochemical sectors;
  • defence industry sectors;
  • agriculture sectors; and
  • sectors producing high added-value based on advanced technology by supporting green and digital transformation having certain qualifications (i.e. fulfilling any of the two conditions, such as having an R&D Center, being located at a technology development zone, having a valid registered patent; receiving incentives from KOSGEB, having a publicly funded R&D project).

During an IPO, the below decreased thresholds for net sales revenue and total assets shall apply for companies in the abovementioned sectors generating 75% of their revenues from such activities (as indicated above) as per their audited financial reports for the last 2 years:

  2022 (TL) 2023 (TL)
Net Sales Revenue 180 million 270 million
Total Assets 300 million 450 million

 In conclusion, the Board has eased the IPO process for certain sectors to support green and sustainable growth by taking into account the 12th Development Plan approved by the Turkish Grand General Assembly on 31.10.2023

Galya Kohen Benbanaste
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