Iran's capital market behind tenders in privatization process
Baku, Azerbaijan, Jan. 17
By Farhad Daneshvar – 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.