The breakdown of costs incurred during the public offering process could be categorized under five headings.

Fees Paid to Investment/Brokerage House (s)

Issuers pay a fee to the investment/brokerage house, and if the brokerage is carried out as a consorted effort, fees are also paid to the consortium member investment/brokerage houses. This fee is calculated over the aggregate value of the offering, based on differing margins depending on the offering size and the type of services rendered by the investment/brokerage house(s).

Fees Paid to the CMB

Issuers are required to deposit the CMB fee to the designated bank account, before the delivery of the CMB’s approval of the prospectus is completed. This fee is calculated at 2/1000 (two in a thousand) over the offering value, and may not be less than the nominal value of the issued shares. During an IPO however, this fee is calculated at 1/1000 (one in a thousand) for the difference between the offering price and the nominal value of the shares.

Likewise, in an IPO, a fee is collected by the CMB for the portion of shares that will not be offered to the public. This fee is calculated at 2/1000 (two in a thousand) over the nominal value of these shares.

Fees Paid to Borsa İstanbul

In an IPO there is not any listing fee collected by Borsa İstanbul from the issuer companies. As an additional incentive to attract foreign listings, Borsa İstanbul waives initial listing fees for all IPOs and offers and additional 50% discount on annual listing fees only for foreign issuers.

For debt instruments, Borsa İstanbul also offers a 50% discount on listing fees for foreign issuers. For listing tariffs please go to "Listing Fee Schedule" (pdf).

Fees Paid to the Central Securities Depository (CSD)

The CSD collects a membership admission fee from the publicly offered companies, which is calculated as 1/1000 (one in a thousand) of the paid capital (this fee cannot be less than TRL 2,000 and more than TRL 50,000).

Other Costs

In addition to the above, costs such as the fees paid to the independent auditors to prepare their independent audit reports and the expenses of advertising/promotion efforts on an international and/or domestic scale should be factored in when considering the total cost of a public offering.