CMB matched individual investors in initial public offerings

Recently, the CMB has made decisions to protect the rights and interests of investors and to ensure fair practices among investors to satisfy excess demand in the initial public offering of shares.

In the first public offering of shares of open stock companies, the “Board Policy Decision on the Methods of Sale and Distribution Principles to Apply in the Initial Public Offering of Shares” will be applied until a new decision is made, replacing the corresponding provisions of the “Notice on the Sale of Capital Market Instruments (Notice) No. II-5.2”.

Accordingly, the market value of the shares offered to the public is TL 750 million or less, and it will be mandatory to apply the stock market sale method. In the previous resolution, this amount was at the level of 250 million lira.

In the case of public offerings with a market value of more than 750 million TL, in case of using the over-the-counter method, an equal distribution will be made to all investors in the individual investment group, and the proportional distribution method will not be applied.

The number of shares that can be claimed per investor cannot exceed a quarter of the total amount allocated to the group to which the investor belongs.

THE LIMITATION WILL BE 3 PERCENT

In case of sufficient demand, it will be determined that the number of shares to be distributed on the basis of each investor in the group of national institutional investors does not exceed 1 percent of the total amount of shares offered to the public. For funds in which a portfolio management company (PYŞ) is the founder and/or manager, such limitation will apply on a PYŞ basis and at 3 per cent.

In accordance with the decision, some institutions and organizations that were previously considered institutional investors were included in the scope of individual investors.

Applications submitted by PMCs, intermediary institutions, and investment and development banks on behalf of their clients with whom they have signed individual portfolio management contracts, and applications submitted by real estate investment funds, venture capital investment funds, mutual funds with the free and/or private phrase in their titles, are within the scope of the institutional investor group. They will not be evaluated. In addition, with the decision made on January 19, the CMB continued the practice of not counting organizations with a certain high level of total assets, annual net income and equity capital within the reach of institutional investors.

Those who are on the list of persons who can access privileged information in the public offering of prospects and their spouses and first-degree relatives by consanguinity or affinity may only make a request within the scope of the national individual investor group. These individuals will no longer be able to make claims for other groups, such as employee benefit groups.

At the end of the construction period, if a demand is received to cover the amount assigned to an investor group, the allocation rate of said group will not be transferred to other groups.

In the case of an investor group not receiving sufficient demand, the unsatisfied portion of that group’s allocation will first be transferred to the domestic individual investor group to satisfy unsatisfied demands, if any. After this transfer, or if there is not as much demand as that assigned to the group of national individual investors, the remaining part can be freely transferred to other groups.

Shares purchased by institutional investors for their own portfolios may not be transferred to individual investor accounts under any circumstances. If brokerage firms, investment and development banks and portfolio management companies request the portfolio of their clients, the request must be made to the investment group to which the client belongs, and the necessary documents indicating that the client has the qualifications required. for the relevant investment group in accordance with Article 18/3 of the Notice must be attached to the application form.

SOME PRINCIPLES HAVE BEEN DETERMINED FOR THE POST-IPO PERIOD

In order to ensure the operation and development of the capital market in a reliable, transparent, efficient, stable, fair and competitive environment, some principles were also determined for the period after the public offering. Investors who buy shares of the distribution may not sell the shares transferred to their accounts after the distribution list has ended, outside the stock market, transfer them to accounts of other investors, or submit them to wholesale operations on the stock market with a special order. for 90 days from the date of transfer of the shares to their accounts.

For shares owned by the current partners of the company whose shares are offered to the public (excluding the part offered to the public, if any), this restriction will apply for 180 days from the date of approval of the prospectus, including the sale. on the stock market.

It was also emphasized in the decision that the issuer and the public offer, the authorized institution or, where appropriate, the leader and co-leaders of the consortium are responsible for accepting the applications and not making the distribution in accordance with the principles established in the regulations. existing.

The policy decisions on the matter, which were previously taken in 2021 and in January of this year, have been repealed.

CMB APPROVES THE FIRST PUBLIC OFFER OF TWO COMPANIES

The Board approved the initial public offering of Koza Polyester Industry and Trade at TL 24.50 per share, and CVK Mining Enterprises Industry and Trade at TL 105 per share.

Elite Naturel Organic food industry and trade 75,600,000 TL, Turkish oil refineries 1,000,651,539,000 84 TL, Kron technology 28,537,000 TL 26, Risk electricity industry contracting and trading 345,000,000 TL, SME venture capital investment company 29 In approving the request for additional capital increase in the amount of TL million, the Board decided that TL 247 million 250 000 from Çağdaş Factoring, TL 1 billion from Vakıf Factoring, TL 500 million TL from MLP Health Services, TL 120 million from Eko Factoring, TL 200 million from Inveo Investment Holding, Kent Finans Factoring TL 235 million approved the issue request of Nurol Investment Bank for Lira 1.5 billion, Aktif Investment Bank for 7.5 billion lira and Türkiye Halk Bankası for 15 billion lira.

ADMINISTRATIVE FINES

CMB, Makro Real Estate Appraisal 257 thousand 577 lira, Plastikkart Smart Card Communication Systems Industry and Trade Inc. stock market, 139 thousand 566 lira to one person, as a result of the examination carried out with respect to transactions carried out between August 26 2022 and September 26, 2022, Yataş Bedding and Yorgan Industry and Trade Inc. Prior to the material event announcement made by Ticaret AŞ on the Public Disclosure Platform on April 15, 2022, Yataş Bedding and Yorgan Sanayi ve Ticaret AŞ decided impose an administrative fine of 141 thousand 410 liras in total, as a result of the investigation carried out on the transactions carried out in the stock market.

Deciding to file criminal complaints against 6 people who are content providers of websites with the extension “Klas FX”, for their unauthorized activities in the capital market, the Board decided to take the necessary legal actions to prevent access to 18 sites website determined to be leveraged abroad for people residing in Turkey via the Internet. . (AA)