The government will offer units of the second exchange-trade fund in the upcoming calendar month starting Wednesday, head of the Iranian Privatization Organization said.
This is in line with plans to offer government shares in companies to the public. The government offered shares in three banks and two insurance companies via ETF in May.
“Subscription of the second ETF will start in the coming month, Alireza Saleh was quoted as saying by IRNA.
“This government-affiliated ETF holds shares of big companies listed on the stock market,” he said, but did not elaborate nor name the companies.
The government wants to offer its shares via two more ETFs, one for shares in refineries and the other for its stakes in auto and metal companies.
As per a timeframe announced earlier by the government, shares of refineries were to be offered in the second ETF. However, the Economy Ministry said recently that priority has been given to the ETF that completes the listing process sooner.
According to Saleh, ETF units will be put on offer for two weeks.
Selling shares via ETFs is considered advantageous both for the government and buyers as it helps the former raise funds by ceding assets to the private sector while providing investment opportunity to the people with limited funds.
“The government is offering shares with the aim to allow more people to participate in the stock market and help lift the economic status of households,” Saleh said.
As per the framework, people with small savings can buy ETF units using their national ID numbers as trading codes.
The government also has considered incentives for investment in state-controlled ETFs like 20% discount on prices.
