CMB changed the public offering conditions – Last Minute Economic News

The Capital Markets Board (CMB) has reduced the prerequisite amounts to be complied with before the initial public offering of shares in certain sectors.

In the CMB bulletin, it was stated that the decision in question was taken in line with the 12th Development Plan covering the years 2024-2028, thus contributing to the reduction of Turkey’s current account deficit and contributing to green and sustainable growth.

The following information was provided in the principle decision published in the CMB weekly bulletin:

“The difficulty of reaching a certain level in the amounts in the financial statements of the partnerships that apply to our Board for the purpose of going public, especially due to differences on a sectoral basis, and the 12th Development Plan (2024-2028) prepared by the Presidency of Strategy and Budget and approved by the General Assembly of the Turkish Grand National Assembly on 31.10.2023. Taking this into account, it has been deemed beneficial to make different regulations on a sectoral basis in order to contribute to reducing the current account deficit in our country’s economy through capital markets, thereby making our country’s growth sustainable by creating a current account surplus, and also to contribute to green and sustainable growth.

In the 12th Development Plan, Energy, Chemistry, Agriculture and Defense Industry were determined among the priority sectors. In this context, in parallel with the 12th Development Plan, the Exclusion of Partnerships numbered II-16.1 from the Scope of the Law and the Trading of Their Shares on the Stock Exchange within the scope of the second paragraph of Article 5 of the Share Communiqué numbered VII128.1, limited to partnerships operating in certain sectors that meet the following conditions. It has been decided to make a reduction in the total assets and net sales revenue amounts specified in subparagraphs (a) and (b) of the first paragraph of Article 8 of the Communiqué on the Principles of Obligation (Communiqué No. II-16.1).

Accordingly, in public offering applications;

a) Operating in the renewable energy sector and generating at least 75% of its revenue from renewable energy production sales, as of the financial statements of the last two years before the application date, prepared in accordance with the Board regulations and specially independently audited,

b) Producing in the petrochemical sector with the license of the Energy Market Regulatory Authority and producing at least 75% of its revenue from petrochemical production sales, as of the financial statements of the last two years before the application date, prepared in accordance with the Board regulations and specially independently audited,

c) Operating in the defense industry sector or serving the sector in the field of information and communication technologies and software, at least 75% of its revenue is produced for the defense industry, as of the financial statements of the last two years before the application date, prepared in accordance with the Board regulations and specially independently audited. / from service sales,

c) Operating in the agricultural sector and having at least 75% of its revenue from the sales of unprocessed raw products obtained as a result of agricultural production, as of the financial statements of the last two years before the application date, prepared in accordance with the Board regulations and specially independently audited,

D) It is certified by a public authority to have an innovative and scalable business model that produces high added value based on advanced technology by supporting green and digital transformation and meets any two of the following conditions,

one. As of the application date, to receive acceptance from one of the regions designated as Technology Development Region by the Ministry of Industry and Technology (Ministry) of the Republic of Turkey and to continue its activities in this region,

2. As of the application date, having an active R&D Center approved by the Ministry under Law No. 5746 on Supporting Research, Development and Design Activities,

3. Having a patent certificate with an ongoing validity period issued by the Turkish Patent and Trademark Office within the last five years,

4. Receiving support within the scope of R&D, Product Development and Innovation Support of the Republic of Turkey Small and Medium Enterprises Development and Support Administration (KOSGEB) in the last five years,

5. Having a publicly supported R&D project that has started or been completed within the last five years.

(a) and (b) of Article 8 of the Communiqué numbered II-16.1 for partnerships that obtain at least 75% of their revenue from these activities, as of the financial statements of the last two years before the application date, prepared in accordance with the Board regulations and specially independently audited. The amounts in the clauses are applied as follows.

TL For 2022 For 2023

Net Sales Revenue 180,000,000 270,000,000

Total Assets 300,000,000 450,000,000

It is mandatory for partnerships within the scope of the above articles to include a breakdown of revenue according to activities in the footnotes of the financial statements prepared in accordance with the Board regulations and subject to special independent auditing.