The ticker symbols of Tehran's two major football clubs, Esteghlal and Persepolis, will open next week, five months after their initial public offering, head of the Iran Privatization Organization.
"The two clubs have finally disclosed the details of their contracts to capital market authorities and Iran Fara Bourse is expected to open their ticker symbols," Hossein Qorbanzadeh was quoted as saying by IBENA.
"The two clubs were required to disclose the total value of contracts of players and coaches as a prerequisite for opening the ticker symbols," he said, "Both clubs submitted the information to the Security and Exchange Organization and they have agreed to open the ticker symbols on Sunday or Monday."
Qorbanzadeh noted that the two clubs should not be obliged to disclose their contracts information when their rivals are not listed in the stock market and do not publish their business information.
"However, transparency should improve step by step," said the official and added that IPO has required eight listed industrial companies, owning football clubs, to disclose the details of their deals with affiliated football clubs.
"So far, Aluminum Arak Club's information is submitted to the SEO and other teams are getting ready to do the same."
The government, after months of delay, offered stakes in the two main football clubs, Esteghlal and Persepolis, in March. However, their ticker symbols are not allowed to be publicly traded. Failing to meet transparency requirements and market fluctuations were said to be the main reasons behind delays in opening the ticker symbols.
Esteghlal sold 1,236,099,656 shares to 286,000 buyers while Persepolis sold 1,034,840,567 shares to 320,000 people.
Both clubs reportedly sold 10% of their stakes in the subscription phase and investors could buy a maximum of 3 million rials shares.
Esteghlal’s stake comprised 1.23 billion shares each priced at 2,910 rials. Persepolis offered 1.034 billion shares each worth 3,387 rials.
The subscription generated 3.6 trillion rials ($14 million) for Esteghlal and 3.5 trillion rials for Persepolis and the money was used to boost the capital of the two main Iranian soccer clubs via share premium.
Share premium is the difference in price between the par value, or face value of shares, and the total price a company receives for recently-issued shares. Share premium is the additional paid-in capital in excess of par value that an investor pays.
The government has said it wants to divest 50% of its shares in the two clubs this year.
The newly-listed clubs are to be traded on the Base Market of the IFB, which is normally for listing companies lacking updated auditing and acceptable transparency norms.
Esteghlal (the Blues) had a private owner before the 1979 Islamic Revolution, but was later put under the control of the then Physical Education Organization (now Sports Ministry). Persepolis (the Reds) had a similar fate.
