Steel Company Goes Public

A steel company’s initial public offer was held on Wednesday, joining five other companies that went public last week.
Sabzevar Pars Steel Complex is offering 15% of its stake comprising 600 million shares, expecting to earn 18.7 trillion rials ($70 million).
The IPO is the second biggest this fiscal year after Sirjan Jahan Steel Complex Company, which made debut last Wednesday.
SPPS was founded in 2015 in the North Khorasan Province. It produces sponge iron mills plus steel making and casting machines.
Listed in the Tehran Stock Exchange, the company is the fifth to make an IPO debut in the past week. It was accompanied by another IPO for a small software company in the junior equity market Iran Fara Bourse.  
IFB hosted the IPO for Negin Software Systems Development Company (known by Persian acronym TOSAN), which plans to sell 5% of its shares worth 1.27 trillion rials ($4.7 million).
The former IPO is to be held through book building method and the latter via the newly launched “combined method”, which is designed for companies of small market cap. In this method price discovery will be made by professional investors, namely exchange-traded funds.
Book building is a process by which an underwriter seeks to determine the price at which an IPO will be offered. Price discovery involves recording investor demand for shares before arriving at an issue price.