TRADING OF PUBLIC COMPANIES
Shares of publicly-held companies, whose shares are not traded on the Exchange, may be started to be traded on the BIST Main without a public offering, only if and to the extent all of the requirements of any one of the groups specified for the BIST Main are met.
If and when the Board of Directors comes to the conclusion that the following conditions are satisfied;
- A minimum period of 2 calendar years must have passed since the foundation of the company (for the purposes of this paragraph, periods of a company while it is in the status of any company other than the joint-stock company are also taken into consideration in calculation of 2 years. In the case of application of a new company founded as a holding company upon acquisition of minimum 51% of capital shares of at least one company with an operating period of more than 2 years, the requirement of 2 calendar years is not asked for such holding company. Provided, however, that shareholders’ equity of subsidiaries with at least 2 calendar years passed since the date of foundation must not be below 50% of shareholders’ equity of new company founded as a holding company, and their total assets must not be below 50% of total assets of new company founded as a holding company.)
- Financial standing of the company must enable it to carry out its business operations in a sound manner
- Shares of the company must not be restricted by encumbrances precluding the shareholder from using its shareholding rights, and its articles of association must not contain provisions restricting the transfer and circulation of shares to be traded in the Exchange; - for causes other than the cases which may be accepted to be valid by the Exchange, the company must not have suspended its business activities and operations for more than 3 months during the last 2 years, and the company is not involved in any form of liquidation, composition or suspension of bankruptcy and being subjected to similar other cases determined by the Exchange
- The company must not be subject to significant legal disputes affecting its production and other activities, and it must have been documented by a legal report issued by a lawyer not having any direct or indirect relationship with the company that the legal situation of the company in terms of its establishment and business operations and the legal situation of its shares are in compliance with the applicable laws and regulations.
Within 2 months following the date of notification of the decision to the company, the shares equal to the “ratio of shares offered to public to the capital” in groups specified for the BIST Main in the requirements table, must have been registered at CRA as tradable in the Exchange, and the market value of these shares must satisfy the condition of “market value of the shares offered to public” included in the same group. In calculation of market value of the shares registered in CRA, the reference price to be figured out as arithmetical average of prices to be determined by valuation report to be issued by two separate institutions authorized by CMB within 1 month prior to the date of application will be taken into consideration.
Shares of the company which meets the said requirements are started to be traded in the BIST Main starting from the 2nd business day following the date of announcement to be made in PDP upon approval of the General Directorate after the prospectus approved by the Board is published in PDP. Price valuation reports are also announced in PDP, together with the prospectus approved by CMB.
Shares of these companies are started to be traded with free price margin in the first session in the first day of trading in the Exchange. In the subsequent process, the trading principles valid and enforceable in the BIST Main are applied.