Preparations underway for 12 major enterprises to join stock market

September 18, 2020 - 14:35

TEHRAN - Head of Iranian Privatization Organization (IPO) said 12 enterprises are going through the final stages for being listed on the country’s stock exchange, IRIB reported.

"In addition to the companies already listed on the stock exchange, 12 major enterprises including three power plant holdings are preparing to enter the capital market," Alireza Saleh said.

Referring to the preparation of companies to enter the capital market, the official added: "By the end of the [current Iranian calendar] year (March 2021), we will have an initial public offering on the stock exchange every month."

"In the past year, the Privatization Organization has put the privatization of [government-owned] companies through the stock exchange on its agenda and is making every effort to make this transformation through the capital market," Saleh stated.

Back in June, Deputy Industry, Mining, and Trade Minister Saeed Zarandi had said that 100 production companies are projected to be listed on the stock exchange of the country by the end of the current Iranian calendar year (March 20, 2021).

Zarandi said that 250 production companies have announced readiness for offering their shares in the stock exchange.

“The goal is to use capital market capacities to boost production, and now 250 companies have announced their readiness to enter the stock market,” he said.

Later in August, Finance and Economic Affairs Minister Farhad Dejpasand said that according to the agreement made between his ministry and the Ministry of Industry, Mining, and Trade, the shares of 50 private companies are planned to be offered in the stock market.

According to Iran’s Securities and Exchange Organization (SEO), the capital market has provided one quadrillion rials (about $23.809 billion) of financing during the first four months of the current Iranian calendar year (March 20-July 21).

The current Iranian calendar year (began on March 20) is named the year of “Surge in Production” by the Leader of Islamic Revolution Ayatollah Seyed Ali Khamenei.

While materializing this motto requires all-out cooperation between the state-owned and private bodies, the country’s stock market is taking some big steps to play a significant role in this due.

The market is trying to attract the liquidity existing in the society toward production and development projects, and many ministries and organizations including the Ministry of Transport and Urban Development have already announced that they are planning to fund their development projects through the stock market.

EF/MA

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