TEHRAN (MEHR - Trend )
The state-run Bank Mellat of Iran is going to offer a 5-percent block of its shares on the Tehran Stock Exchange tomorrow.
Iran Privatization Organization will be the entity in charge of the share transfer process, the Mehr News Agency reported on Monday.
Bank Mellat was the first state-run Iranian bank which offered 750 billion rials (about $77.5 million) worth of its shares on February 18th.
Previously, six percent of Bank Saderat and five percent of Bank Tejarat, two other state-run Iranian banks, have been offered as initial public offering schemes.
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 public, it will establish a market price which further offerings can be based on.