Metal Company IPO Disappoints

Iran Fara Bourse, the junior equity market in Tehran on Wednesday hosted an initial public offer for shares of a metal company on Wednesday.
Iranian Lead and Zinc Production and Development Company offered 15% of its stake comprising 75 million shares, out of a total 500 million shares of the company.
As expected the IPO was not welcomed as was the case for other IPOs last year. According to the IFB, shares were bought by 2.45 million trading codes -- less than half the numbers registered last September.  
The company sold each share for 7,842 rials generating 588 billion rials ($2.7 million) via the IPO, being the second company that makes debut in the current fiscal year (started in March), according to a press release posted on the IFB’s website.
Founded in 2009, the newly listed company is located in western Zanjan Province with an annual capacity of 255,000 tons of zinc concentrate and 25,000 tons of lead concentrate.
IPOs used to return high amid frenzy of buyers competing to grab a slice of stakes of listed company. But with market indicators plummeting, the shares of many listed companies dropped below the prices set at the IPO, undermining the trust of millions of investors as seen in the huge decline in new IPOs.
Investor turnout for IPO's reached its apex last September when 5.5 million partook in the offer by Peyvand Gostar Pars Energy Company.
Tapping into the lucrative bourse in the first half of the previous fiscal year (March-Sept. 2020), companies went public and delivered good returns via secondary trade. However, the IPOs declined significantly when times and consequences turned for the worst and the bourse bubble burst.