Developing the negotiated market, which saw its first listing last week, is a priority of the Iran Fara Bourse (IFB), Mohammad Ali Shirazi, the CEO said.
"Establishing the Startup Market to list knowledge-based and innovative companies, planning for the development of public joint-stock company projects, and activating the Third Market, are other priorities," Shirazi said.
According to the Iranian Capital Market News Agency (SANA), the annual general assembly for the fiscal year that ended on March 22 was held on Wednesday. Shareholders approved the financial statements and agreed to a dividend of 50 rials per share equivalent to 17% of the distributable profit.
About 56% of shareholders participated in the assembly and Bayat Rayan Audit Institute was selected as the primary auditor and inspector, Bahmand Audit Institute as the inspector and alternate auditor, and the Farsi-language Ettelaat newspaper as fficial newspaper.
Shirazi presented a report on the company's annual performance. He said building competitiveness, efforts to complete the country's financial supply system, and fully developing the primary market are among the company's strategies. "Innovation and technology development via a special platform for specialized fintechs in the capital market are other IFB objectives."
Regarding introducing Fara Bourse markets to the derivative market, listed securities, and markets outside the exchange, Shirazi said markets outside the exchange include the negotiated market, base market, and the third market. "The third market is the venue for offering unlisted company shares and subscription of companies on the verge of establishment."
IFB posted the highest income through transaction fees, accounting for 61% of the total.
Key Measures
The official noted other events of the past year saying that seven licenses for crowdfunding platforms and three preliminary approvals for these platforms were issued.
Furthermore, the introduction of several Fara Bourse indices, such as the Weighted Price Index, the All-Weighted Index, and the Weighted Price Index, were among other measures.
During the year, 17 companies had their initial public offerings, and three securities were upgraded from the base market to the first and second markets. Additionally, 20 companies and one public joint-stock project were accepted, with three of them being knowledge-based companies.
Future Plans
Shirazi outlined future plans of the company stating that the development of the negotiated market, which saw its first listing this week is a key item in March 2023-24.
"Launching the Startup Market for accepting knowledge-based and innovative companies, planning for the development of public joint-stock company projects, and activating the Third Market are other plans."
The exchange has two main markets, namely the first and second, which are specific to companies with acceptance capabilities. Currently, there are more than 170 companies listed in the markets, 14 of which are knowledge-based.
It has been reported that the government is pushing for the expansion of knowledge-based firms and innovators. Iran has been striving to promote the knowledge-based economy and boost innovation and entrepreneurship.
The country aims to increase the share of knowledge-based products in the economy and promote tech-based startups.
IFB was established in 2009 as an over-the-counter market for securities and other financial instruments. The exchange is regulated by the Securities and Exchange Organization. It is a multi-commodity center trading in a wide range of items, namely securities, including equity, debt, and Islamic instruments.
Establishing a new market for knowledge-based companies is a positive development for IFB and the national economy. It will provide a platform for innovative startups to secure funding and grow plus attract investment.
Per the rules, IFB can accept knowledge-based companies in both the first and second markets. In case of non-compliance with acceptance conditions, the over-the-counter market can serve as a suitable tool.
Tap30, a ride hailing app, went public last year. The next will be Café Bazaar, Iran’s largest Android app store and Filimo, a popular video-on-demand platform. It has been reported that almost 30 startups have applied to join the share market.
Iran has an estimated 7,000 knowledge-based companies and 1,600 startups. The government has welcomed the startups’ entry in the bourse and says it will support such firms given their potential visible role in the economy.
Stock market officials earlier said that the regulatory barriers for such firms have been removed and new guidelines for listing startups are in the pipeline.
