Financial Institutions and Markets

Author: Hazel Coşkun Baylan

Introduction

The Communiqué on the Principles Regarding the Companies whose Shares will be Traded on the Venture Capital Market (II-16.3) ("Communiqué") has facilitated for private joint stock companies to sell their shares to qualified investors without a public offering. Thus, a new opportunity is created for joint stock companies that do not meet the conditions for going public but have a certain size to sell their shares to qualified investors. This market, established within Borsa Istanbul (“Venture Capital Market”), is expected to make a dynamic contribution to Turkiye's financial and start-up ecosystems and to be a catalyst for innovation, entrepreneurship and economic growth. This article examines the requirements for the company's shares to be traded on the Venture Capital Market, the process of offering the shares for sale and the obligations to be complied with following the sale.

Requirements for Offering Shares for Sale

In order for the shares of joint stock companies to be traded on the Venture Capital Market, in their independently audited financial statements for the year preceding the year in which their shares will be offered for sale;

1. Total assets must be at least TL 20 million,
2. Net sales revenue must be at least TL 10 million,
3. In order to switch to registered capital, its registered capital must be at least TL 10 million and fully paid up.

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