Regulator Tightens IPO Rules

The Securities and Exchange Organization plans to reform policy related to initial public offering for “risky” and small-size listed companies, the SEO deputy for market supervision said.
Referring to new instructions announced by the regulator, Mehdi Parchini said the SEO will introduce a “combination process” for share offers of risky and small cap companies, the Securities and Exchange News Agency reported.
“This would facilitate listing of companies that are risky in terms of their financial performance,” Parchini said. “Accordingly, when a newly listed company is see as risky by the SEO, it will be required to offer its shares only to professional investors.”