Iranian Economy Minister Farhad Dejpasand said that the government has planned to list its shares in three banks and two insurance firms to raise over $1 billion in new finances as more public firms set up initial public offering (IPO) in a stock market where there is an unprecedented upsurge in trade.
“The listing for the five government-run entities, namely, Bank Mellat, Bank Tejarat, Bank Saderat, Alborz Insurance and Amin Reinsurance, will take place late next week in the Tehran Stock exchange (TSE),” Farhad Dejpasand said on Saturday.
Dejpasand added the five banks and insurers would build an exchange-traded fund (ETF) in a trade that is envisaged to generate 165 trillion rials (over $1 billion) in new finances for the government.
The listing would come more than two weeks after an IPO for the Iranian government’s largest investment holding, known as Shasta, generated more than $400 million.
The IPOs are part of government projects to use a current boom in the TSE to shore up finances that have been harmed by a series of illegal US sanctions.
The minister said IPOs for public companies will continue in next months with the listing of two major football clubs and several refineries and industrial units.
He made it clear that booming trade in the TSE, where overall value has already surpassed $180 billion, was a good sign for an economy that needs new resources for investment.
He ruled out claims that there is a bubble in trades in the TSE, saying, “Based on our studies, there is no bubble in the market as a whole and I have not seen any study showing there is such a bubble.”
More than 3.448 billion shares changed hands in the TSE on Saturday, adding nearly $320 million to the value of the market.
The TSE’s overall value exceeded $181 billion on Saturday as main index TEDPIX rose 3.76 percent to reach 789,820 points.
In a relevant event on April 18, Tehran Stock Exchange (TSE) recorded its biggest daily jump as the main index in the market topped an all-time high of 668,320 points.
Reports in the local media said TSE main index TEDPIX rose by 23,219 points, a surge of 3.49 percent compared to figures recorded at the end of the previous day of trade in the market.
Source: Farsnews- Date: (26 April 2020)