Petrochemical industry to be fully privatized
TEHRAN – The managing director of Iran's National Petrochemical Company (NPC) stated that all shares of domestic petrochemical firms will be offered to the public in the frame of a holding company by the end of the present Iranian year (March 21, 2010).The Mehr News agency quoted Adel Nejad-Salim as saying that $1.8 billion dollars will be offered as petrochemical holding company shares by September.
NPC has prepared the articles of association of the holding company and the Iranian Privatization Organization has given the green light for the offering of shares on the stock market, he added.
Iran’s Oil Ministry formerly released the list of 21 companies to be offered to the private sector in line with Article 44 of the Constitution.
Out of the companies, five belong to the National Iranian Oil Company (NIOC), nine to the National Petrochemical Company (NPC), five are affiliates of the National Iranian Gas Company (NIGC), and two of the National Iranian Oil Refining and Distribution Company (NIORDC).
According to Iran’s Fourth Five-Year Economic Development Plan (2005-2010), Iran Privatization Organization which is affiliated to the Ministry of Economic Affairs and Finance is in charge of setting prices and offering shares to the general public on the stock market.
The current privatization effort calls for an initial public offering of five percent of the firms being privatized. Once the five percent is made public the market price for further offerings will be established.