What is an IPO? What are the Advantages for Businesses?
Public offerings on Borsa Istanbul are very popular among investors. Millions of investors across Turkey want to utilize their savings by participating in IPOs. Many investors even dream of early retirement by buying shares of companies traded on the stock exchange or offered to the public for the first time. Those who do not know what an IPO is do research on 'what is an IPO? In addition, this situation provides a great return not only to investors but also to businesses. As such, 'What are the advantages of public offering to businesses?' inquiries are also curious.
Public offerings are seen as one of the popular investment opportunities of the last period. Those who want to own shares in Borsa Istanbul by investing a certain portion of their savings or salary closely follow public offerings. Thus, the question 'what is an IPO?' is frequently researched. Not only investors but also business owners are looking for answers to the question 'what are the advantages it provides to businesses? In this way, the earnings of the company that partners with its investors in Borsa Istanbul are wondered.
DETAILS OF THE IPO PROCESS
Preparation
The IPO process consists of several stages. In the first stage, the benefits and advantages of an IPO are evaluated. If an IPO decision is taken as a result of this evaluation, an internal working group is formed.
Legal Regulations and Application Documents
In the second stage of the IPO process, the company is brought into compliance with the legislation related to the IPO. The company's IFRS-compliant financial statements and reports are subject to independent audit, an independent legal expert's report on the legal status of the company is prepared, and a valuation is made by a valuation company authorized by the CMB to determine the current market value of the company's tangible fixed assets. A prospectus is prepared explaining the company's financial position, management structure and business model in detail. The prospectus is the most important document to be presented to potential investors and includes information such as the company's financial position, annual reports, risk factors and the objectives of the public offering.
Valuation and Price Determination
The valuation of the company is a critical stage of the IPO process. The valuation is carried out by the intermediary institution that will intermediate the public offering. This valuation, documented in a valuation report, is divided by the company's capital to determine the initial price at which the company's shares will be traded in the market.
Demand Collection
After the public offering prospectus is approved by the CMB, investors' demands are collected on the dates determined. The company starts trading on the stock exchange with a gong ceremony to be held on the day determined after the demand collection.
Public Offering and Trading
At the final stage of the IPO process, the company's shares are traded on the stock exchange at the determined price. Shares are traded on 8 different markets in the Borsa Istanbul equity market. These markets are the Stars Market, Main Market, Sub-Market, Close Monitoring Market, Pre-Market Trading Platform, Structured Products and Fund Market, Venture Capital Market and Commodity Market. On the first trading day, share prices can often fluctuate and change sharply in line with investor interest.
WHAT ARE THE ADVANTAGES OF PUBLIC OFFERINGS?
Financing
Liquidity
Introduction
Institutionalization
Secondary public offering opportunity
Creditworthiness
Globalization
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