Tehran Stock Exchange is set to list the first project-based company, an official said.
"The TSE has been focusing on project-based companies to strengthen the primary market and attract investment. The first project-based company will be listed within two weeks," Mohammad-Amin Gharmani, TSE deputy for publishers and members of the exchange, was quoted as saying by the news agency SENA.
Gharmani said the TSE is negotiating with publishers seeking funds for their projects.
In January, the TSE called on the Security and Exchange Organization (SEO) to launch a specific market for funding project companies.
According to Mahmood Goudarzi, the TSE chief, companies are not planned to be listed in the proposed market. The main function of the market is to finance projects of public joint stock companies, SENA quoted him as saying on Sunday.
The SEO approved regulations in 2021 for setting up public joint stock companies whose main function will be project funding.
The TSE is reviewing the documents of four large companies interested in IPOs. Four others are in the process of being listed. The companies are mainly involved in the metal industries and financial holdings
The ‘Project Public Joint Stock Company’ will complement the stock market and facilitate funding for economically viable projects. Project companies will help fund megaprojects seen as technically and economically feasible.
The project company should be affiliated to a public joint stock company listed on the bourse and perform as the financier of the parent company.
Minimum capital needed to set up a project company is five trillion rials ($20 million) and owners are required to secure half the capital before offering shares in the bourse.
The main shareholders’ contribution will be in kind including assets such as land, buildings and machinery.
Intangible assets such as brands, trademarks… will not be accepted as the investor(s) contribution to the company’s capital.
In addition to project-based companies, the TSE is planning to increase the number of initial public offerings (IPOs).
Gharmani stated that the TSE is working on daily valuation reports, documents and files related to the IPO process. He emphasized that the faster companies provide their documents, the shorter the time required for an IPO.
"The TSE is studying documents of four large companies interested in IPOs. Four companies are in the process of being listed. These companies are mainly involved in metal industries, financial holdings."
Gharmani encouraged shareholders to log on the TSE website for data on companies that are in the process of being listed and IPOs. The TSE has been actively pursuing IPOs and listings since last year.
