Turkey's market regulator approves 5 IPO applications
The Capital Markets Board of Türkiye (CMB) has recently approved five new initial public offering (IPO) applications, marking a continued interest in the domestic capital markets. This development aligns with the broader trend of companies seeking to raise capital through public offerings, despite a general decline in IPO activity compared to previous years.
As of April 2025, there were over 7.5 million individual investors in the equity market, a significant increase from 1.2 million at the beginning of 2021. This growth in retail investor participation reflects a broader engagement with the stock market and may contribute to increased liquidity for newly listed companies.
The CMB, as the primary regulatory body overseeing IPOs in Türkiye, ensures that all offerings comply with the Capital Markets Law and related communiqués. The approval process involves a thorough review of the prospectus, which must include all material information necessary for investors to make informed decisions. The prospectus must be submitted for approval before the public offering or admission to trading on Borsa Istanbul, the country’s national stock exchange.
Borsa Istanbul operates as the sole stock exchange in Türkiye and consists of multiple market tiers, including the BIST Stars Market, BIST Main Market, and BIST SubMarket. The market in which a company is listed is determined based on its market capitalization, free float, and other financial metrics. The CMB and Borsa Istanbul work in tandem to ensure that all listed companies meet the necessary regulatory and financial standards.
The recent approvals bring the total number of listed companies on Borsa Istanbul to 707 as of April 2025, with 227 listed on the Stars Market and 269 on the Main Market. Domestic companies predominantly choose to list locally, with only three Turkish firms listed abroad. These include Hepsiburada, Turkcell, and Martı, all of which have opted for listings on U.S. exchanges.
The IPO process in Türkiye is governed by a comprehensive legal and regulatory framework, including the Capital Markets Law, the Communiqué on Prospectus and Issuance Document, and the Listing Directive of Borsa Istanbul. These regulations ensure transparency, investor protection, and market integrity.
With the approval of these five new IPO applications, Türkiye continues to demonstrate its position as a key market for capital raising in Europe. The CMB’s oversight and the structured regulatory environment contribute to the stability and growth of the capital markets, supporting both domestic and international investors.
