More than 5.45 million investors took part in the listing of Sepehr Saderat Financial Group Company, the investment arm of Bank Saderat Iran.
The listing process commenced after the regular trading hours of the stock market (9:00 a.m-12:30 p.m.) on Sunday and ended Monday.
The investment company offered 20% of its stake, comprising 6 billion shares, 5.4 billion of which was sold via an initial public offering and the rest to investment funds.
The company was listed in the junior equity market Iran Fara bourse and was the 15th company listed with IFB in the current fiscal year that started in March, according to the IFB website.
With each share costing 10,100 rials, the IPO generated 60.6 trillion rials ($242 million). The earnings reportedly will help the semi-private BSI to correct its balance sheet and reduce losses.
“The BSI made remarkable earnings [from the IPO]… this will can put its accumulated losses for this fiscal year at zero,” Ahmad Fazeli, the BSI deputy for financial affairs was quoted as saying by ISNA.
The BSI is set to produce the best half-yearly financial statement unseen in its 68-year history, Fazeli said.
He expressed the hope that the new earnings and an ensuing enhanced capital adequacy would boost the bank’s lending capability. Most banks have come under mounting criticism by economic experts and business leaders for their inability and unwillingness to lend.
In the same vein, Hamed Hamedinia, an official with the company, described the listing as a major BSI move to offer assets and reduce non-bank activity.
IPO earnings should significantly improve its balance sheet, Hamedinia told a press briefing posted on the company’s website.
As one of BSI’s major subsidiaries, Sepehr Saderat Financial Group Company was founded in 2014 in Tehran. It offers financial services and invests directly/indirectly in industrial, commercial and transportation projects via subsidiaries and associated companies.
