Key elements contributing to funding in the Iranian market in the calendar month of April 20 were an increase in capital with a share of approximately 84% and bonds taking up the rest, the Central Bank of Iran said in a report this week.
In terms of initial public offerings (IPOs), approximately 240 billion rials ($4.6 million) was made available in the calendar month accounting for a mere 0.2%of the total. This indicates a relatively modest level of IPO activity during the period.
Among the notable developments, the capital increase from public joint-stock companies (PJSCs) amounted to around 116 trillion rial ($2.2 billion) in the month. This represented approximately 7% of the total funding. The increase in capital from public companies demonstrates their interest and commitment to expanding their presence and the capital base.
On the other hand, the issuance of debt securities through corporate and municipal bonds reached approximately 22 trillion rials ($423 million). However, no government bonds were issued during the month.
The CBI provides insight into the dynamics of the domestic financial market and highlights the role played by capital increases and securities issuance in supporting economic activities and business expansion. The findings indicate the ongoing efforts of diverse firms to find money and capitalize on what is available in the market.
Financial experts and analysts emphasize the need for a robust financial system to facilitate decent economic growth and attract investment. The development of the capital market, including issuance of securities and expansion of IPOs, contributes to financial stability and economic growth.
