Ghadir Industry and Investment Development Company, better known as the “Cement Holding of Ghadir Investment” conglomerate, is to make its first stock market debut on Saturday.
As per a notice by Iran Fara Bourse, the junior equity exchange, the company will offer 5% of its stake of 167 million shares -- each share at 14,500 rials. It expects to generate 2.42 trillion rials ($8 million) via the IPO.
The IPO will be premised on the newly announced regulations for small-size listed companies. As per the guidelines, a newly listed company with small market cap can offer shares only to professional investors.
Accordingly, a portion or all the shares will be available to “eligible investors”, namely exchange-traded funds (ETFs) and mutual funds. Price discovery will be undertaken by the funds and be the base price for trade in the secondary market.
The rule applies to companies whose value of free floating shares is less than 5 trillion rials ($17 million). Free float shares refer to the number of a company's outstanding shares owned by public investors, excluding locked-in shares held by company managers and officers, controlling-interest investors, governments and other private parties.
The cement company is the first of several Ghadir holding subsidiaries to make a debut in the bourse. Earlier, Amir Abbas Hosseini, managing director of the giant group said there are plans to offer shares of other companies in the near future, including two steel companies.
Ghadir Investment Company was established in 1991 under the initial name of Bank Saderat Investment Company as a private joint stock company.
Its has investments in several key sectors, namely oil, gas, petrochemicals, power and energy, mining, transportation, cement, construction, trade, finance, IT and telecoms.
