In order to facilitate for companies offering growth and development potential to raise funds through capital markets by listing and trading their equities in an organized and transparent environment, Emerging Companies Market (ECM) is established under Equity Market of Borsa İstanbul.
Company shares which are approved and registered by CMB can trade on ECM unless the company has not sufficient conditions to be listed on BIST Stars or Main markets under Equity Market. In addition to obtaining equity capital as an alternative source, ECM also increase company awareness and credibility in the eye of investors and stakeholders.
Companies which carry conditions for BIST Stars and BIST Main in first listing application to our Exchange, should not apply to ECM for their shares to be traded on the market. However, this provision is not applicable for unsuccessful listing application attempts of companies to be listed on BIST Stars and Main Markets.
Without prejudice to the provisions of regulations of CMB, angel investors certified by the Undersecretariat and venture capital investment trusts and venture capital investment funds may offer their shares in companies for sale during the public offering or as after the date the shares are started to be traded in the Exchange, without being subject to provisions of Listing Directive, providing that they do not act as a founding partner, and they have become a partner of the corporation at least one year prior to the date of public offering, and they are not classified in the trade exclusion list by CMB.
Admission to the ECM Directory (refers to the list of securities, which can be traded on the ECM) is done only for shares to be issued as a result of capital increase through partial or full restriction of the pre-emptive rights of the existing shareholders. Provided, however, that after the end of two years following the date of starting of trading of the company shares on ECM, shareholders of the company before public offering, or purchasers of shares of these shareholders outside the Exchange can sell their shares in ECM providing that the free float rate of the company does not exceed 49% except for sales of shares mentioned in Listing Directive. If and when the shares of the company, which is suspended from trading permanently, listed in the ECM again, periods of the corporation while it is out of the Exchange are not taken into consideration in calculation of 2 years.
The idea behind the facilitation of the admission procedure is to provide these companies with an opportunity to raise funds through public offerings as a long term and low cost financing alternative. It is aimed that funds raised by companies as a result of issuing shares should be directly used in operations to strengthen its fiscal structure. There is not any restriction for existing shareholders to obtain shares from primary and secondary markets.
Companies whose shares trade for the first time on ECM, are obliged to utilize “Sales at the Exchange” method.
Market Advisor is an institution authorized by Borsa İstanbul to serve as a “market advisor” as defined by the ECM Regulation. Within the framework of the CMB and Borsa İstanbul regulations, the market advisor is obligated to assist the company to complete the preparations necessary for the application for admission to the ECM Directory and attest, jointly with the company, the accuracy of the information and documents submitted to Borsa İstanbul and disclosed to the public; to write the company report to be submitted to Borsa İstanbul along with the ECM application; and after admittance to the ECM Directory, to provide advisory services to the company to comply with the capital markets regulations and Borsa İstanbul regulations.