The Decree on the initial public offering (“IPO”)of Borsa Istanbul Anonim Sirketi (Istanbul Stock Exchange Market) (“Borsa Istanbul”) shares issued by the Council of Ministers has been published in the official gazette on November 14, 2014.
According to the Decree, type B share certificates of Borsa Istanbul which are owned by the Undersecreteriat of Treasury will be offered to the public. Shares offered through the IPO will not exceed 42.75% of Borsa Istanbul’s capital, and the IPO may continue until December 31, 2015. It is worth noting that Deputy Prime Minister has the authority to determine the percentage of shares offered to the public and to extend the duration of the IPO.
Although Borsa Istanbul will determine the procedure, principle and timing of the IPO in both local and international capital markets, the pricing of the offered shares must be approved by the Council of Ministers prior to the IPO. Pursuant to the IPO, the earnings from the sales will be retained in a separate account in T.C Ziraat Bankasi A.S and transferred to the Undersecreteriat of Treasury within 3 months after deducting consultancy fees, listing fees and fees of the Capital Markets Board.