Public Offering through Sale of Existing Shares

The shareholders of a company may offer some of their shares to public at or outside the Stock Exchange.

In order for shareholders to offer publicly their shares in a company; there should not be any records, by giving pledges, on the shares that restrict the transfer or circulation and prevent the shareholders from exercising their rights.

Company Board is required to prepare a proforma amendment on the article pertaining to the corporate capital in its Articles of Association document, and the CMB should approve the amendment request proposed by the company.

Public offering through capital increase

Companies can get funding by issuing new shares through capital increase.

Non-public companies may offer their shares via capital increases by restricting preemptive rights of shareholders partially or fully. All of the capital must be paid. Before applying to the CMB, the following actions should be taken:

- The board of directors should draft an amendment of the capital article of the Articles of Association and obtain approval from the CMB for it.

- The general assembly of the company, within the scope of the Turkish Commercial Code - must decide on increasing the capital and limiting the preemptive rights.

Utilizing both Methods

Companies can use both methods together. In that way, both existing partners get revenues from the sale of their shares, and the company get funding.