The Iranian Privatization Organization has offered a large amount of government securities, valued almost 32 trillion rials, within the past 8 months, the IPO’s public relations department announced.
According to the report, 32,578 trillion rials worth of securities have been transferred of which 282 billion rials was offered at the Tehran Stock Exchange (TSE), and close to 25.7 trillion rials worth of those securities were offered through Iran Fara Bourse or over-the-counter (OTC) market. Furthermore, nearly 6.6 trillion rials worth of shares was offered via auction, while negotiated sale amounted to 1 billion rials.
The report further said that, of the 32,578 trillion rials of state shares transferred within the said period, 32.21 trillion rials was offered in the form of creation units, 246 billion rials traded as collateralized, and 311 billion rials as preferred stocks.
A total number of 32,311 trillion rials worth of the securities transferred to the assignees was previously owned by the enterprises in the first group as referred to in the second section of the Article 44 of the Constitution. Of the total amount of transferred shares, 267 trillion rials is associated with the state-owned companies classified as the second group in the second section of the same article. More than 1,317 trillion rials worth of shares of the state-owned companies have been transferred by the IPO in the past ten years, from which up to 55.9 percent have been offered among all interested applicants.
Almost 280 trillion rials of these shares have been offered directly to the government’s creditors, including both individual and institutional investors. This was equal to 21.4 of the total securities offering in the 10-year period. In addition, Justice Shares comprised nearly 289 trillion rials of the shares, accounting for 22.6 percent of the total amount of stocks offered since 2004.
Lucrative IPOs
Initial public offerings (IPO) were held for 10 major government enterprises by the Iranian Privatization Organization at the TSE and the OTC market within the first week of the current month. The move was conducted in line with the Article 44 of the Constitution, and the approvals of the organization’s stock transfer registry.
Almost 304 million of the total shares of the Persian Gulf Transportation Company (PGTCO) were reportedly offered on TSE’s trading board on the day its IPO was launched, provided that the base price would not exceed 2,843 rials. The creation unit consists of about 87 percent of the shares of PGTCO, of which 30 percent was offered in the form of cash in advance and the rest as 5-year installments.
Also, 484 shares of Omran Techlar Construction Company were offered as block trade, as well as 25 shares in the form of preferred stocks. The company’s creation units were offered on OTC board at the base price of almost 2.5 billion rials each.
The privatization organization also announced that a leading sugar cane producer was among the recent IPOs, as close to 228 million shares of this company, with the base price of 102,405 rials per share, was traded via the OTC market.
Shares of several other enterprises were also offered to the potential buyers through auction method, including Iran Air Tour and the National Iranian Oil Refining and Distribution Company.
Concerning the sale Iran Air Tour’s shares, 6,854,250 shares of the company, worth 70,880 rials each, were traded in form of 40 percent cash in advance, and the rest via 2-year installments.
