Iran's capital market behind tenders in privatization process
By Trend
There are firm indications suggesting that Iranian capital
market has made a minor contribution to the privatization process
of the state-run enterprises over the past ten months.
According to the latest statistics, only 17 percent of the shares
of the privatized business have been sold on Tehran Stock Exchange
(TSE) and the country’s over-the-counter market (Farabourse)
between last March and January 2017.
Commenting on the issue, Alireza Kadivar, a financial analyst and
deputy head of Iran’s Novin Investment Bank, told Trend that most
of the companies who have been sold through tenders were operating
at a loss.
Therefore, the TSE and Farabourse would not list them due to the
existing regulations on profitability and also transparency, he
added.
Iranian government has sold $512.4 million worth of shares of
state-affiliated companies through the country’s capital market and
also through holding tenders in the mentioned period.
Iranian Privatization Organization (IPO) has sold $71.1 million
worth of
shares through Tehran Stock Exchange (TSE) and $16.3 million on
Farabourse.
This is while $424.9 million worth of shares were sold through
tenders, accounting to 83 percent of the whole privatized shares in
the country over the current Iranian calendar year (starting March
20).
The IPO in total has sold $512.4 million (16.369 trillion rials
converted to US dollar according to official rate) worth of shares
between March 20, 2016 and January 4, 2017.
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