Turkish IPOs in Istanbul, London and the United States – Key Issues for Market Participants

February 2, 2022

The Turkish IPO market has experienced a significant uptick in activity since the second half of 2020, indicating that the IPO outlook for Turkish businesses is significantly improving.

Following a period of notable volatility, the Turkish capital markets laws were amended and modernized in 2020, laying the groundwork for a record-breaking period for Turkish IPOs. In fact, eight companies successfully launched IPOs in Turkey and raised approximately TRY462.5 million in 2020. Turkish IPOs targeting local investors also faced an unexpected rise in 2021, fueled by a significant reduction of interest rates during the pandemic, which encouraged investors to seek Borsa Istanbul as a viable listing venue. Among many noteworthy transactions, another highlight of 2021 was the $783 million SEC-registered IPO of Hepsiburada, the first-ever Turkish company to be listed on the Nasdaq, on which Cleary Gottlieb and Paksoy acted as counsels for the underwriters.

This memorandum outlines certain of the key international and Turkish legal considerations arising in such transactions. It considers each step in the transaction timeline, focusing specifically on IPOs involving a Borsa Istanbul listing in the context of a global equity offering, and also compares these to the equivalent requirements for an IPO and listing of a Turkish business on the London Stock Exchange and on a U.S. listing venue.

Please click here to read the full alert memorandum.