Business And Markets

Minority Secures 65 percent of LSF Shares

Minority Secures 65 percent of LSF Shares
Minority Secures 65 percent of LSF Shares

Initial public offering of 15 million shares of the first land and structure fund (LSF) ended last week. Legal entities scooped 65 percent of shares, FNA quoted an official at Fara Bourse as saying.

Behnam Mohseni, director of Fara Bourse operations said more than 1,000 people subscribed for the initial public offering of the LSF called Nasim. According to Mohseni, Natural persons accounted for 98 percent of subscriptions. 

More than 29.6 million shares were offered at a nominal price of $0.33. The fund's founders acquired 14.6 million shares, while the remaining 15 million shares were purchased within five days at Fara Bourse. The secondary trading of Nasim's shares will start in the next few days. 

Legal entities accounted for 2 percent of buyers, and yet they managed to acquire 65 percent of shares. The remaining shares were bought by natural persons.

LSFs don't offer guaranteed profits to investors. The shareholders will only obtain dividends after the sales of construction units, Mohseni said. 

"The secondary trading of LSF shares begins soon at Fara Bourse. The market makers will subsequently receive purchase and sales orders."

Market making of Nasim shares will be carried out according to the terms and conditions included in the fund's purchase notice, published on Fara Bourse website.

Mohseni added that the net asset value (NAV) of Nasim share will be announced every three months.