Iran Frara Bourse, the junior equity market, will host the initial public offering for 10% stake of Saba Tamin Investment Company on Wednesday.
The offer includes 1.8 billion shares, 1.5 billion of which is to be sold to public, and 300 million to investment funds.
The company expects to raise 18 trillion rials ($112 million) via the IPO.
Investors are required to place order on prices ranging between 11,000 -12,000 rials per share, IFB said in a notice published on its website.
Each institutional and individual trader will be able to buy maximum 1,200 shares. Investors can place orders through book-building method, a process by which an underwriter attempts to determine the price at which an IPO will be offered.
The price discovery involves recording investor demand for shares before arriving at an issue price.
STIC is an investment company affiliated too the Social Security Investment Company, the giant investment holding, also known by its Persian acronym Shasta.
Providing funds for the financial needs of Shasta is among the main duties of the STIC. The company offers various financial services to Shasta subsidiaries in areas such as financing and, portfolio management, and stock marketing.
Wednesday’s IPO marks the first company that goes public on IFB in the new fiscal year that started on March 20.
Stock market officials say more companies will do likewise in the coming weeks, addressing calls from financial analysts who have urged market regulators to expand the market by listing more companies.
Pointing to the unusual increase in key stock market indicators and price bubbles in shares of the majority of small-cap companies, experts say there is a big mismatch between the capacity of Iran’s stock market and the money flowing into it by an ever increasing number of investors.
Market officials are asked to help boost the supply side by encouraging more companies to list and create a relatively balanced demand and supply mechanism.
