Azerbaijan, Baku, Jan. 2/ Trend M. Moezzi/
Iran's energy stock exchange got a warm welcome when investors bought up 20 per cent of its stocks, worth approximately $3.6 million, in 45 minutes, Mehr news agency reported.
Focusing on electricity, the energy stock exchange was to offer 20 per cent of its stock prospectus today. The stocks' value was 40 billion rials (about $3.6 million).
Investors were ready for the prospectus to begin at 8 a.m. and in 45 minutes all the stocks offered were sold.
In this prospectus, each private and legitimate person could buy 7500 shares totalling 7.5 million rials ($670). Sixty per cent of the energy stocks are owned by financial institutions and 20 per cent by others.
The new energy stock exchange is starting up as Iran faces new sanctions and the second phase of the country's targeted subsidies programme, to be accompanied by higher energy prices and will go into effect by the year's end (Iran's solar year ends in March).
Starting up the energy stock exchange has been essential given the targeted subsidies programme and free market price, including electricity. It is expected that buying and selling electricity will be more structured with the stock exchange.
Since power plants and energy companies are to be turned over to the private sector, they have to be economically justified. The energy stock exchange's purpose is to create competition in the energy market. There were concerns that the energy stock exchange might suffer the same fate as Iran's oil stock exchange. After that was opened it became bogged down by problems.