Shares of 11 Iranian government companies divested to private sector

Business Materials 25 July 2018 18:58 (UTC +04:00)

Tehran, Iran, July 25

By A. Shirazi - Trend:

Iranian Privatization Organization (IPO) held its third auction in the current Iranian calendar year (started March 21), managing to divest shares of 11 government companies and firms to the private sector on July 25, an official said.

According to Jafar Sobhani, the adviser to the IPO head, the value of the offered shares stands at 400 billion rials, IRNA news agency reported.

He added that a major portion of the shares belonged to the sectors of industry, cultivation and livestock.

The reason for the decline in the values of the shares compared to previous rounds was due to the banking facilities provided to the buyers in the private sector.

Through privatization of government companies, Iranian government seeks to restructure the country's economy and reduce the government's expenses by promoting the private sector.

Increasing productivity levels in large enterprises is also among the main objectives of selling the shares of government companies.

Recently, the Iranian stock market witnessed some first-ever successful experiences this year both in national and international transactions and also in terms of science and training.

This came as people are turning to the stocks amid the economic crisis the country is facing and ahead of the implementation of new US sanctions on Tehran.

US President Donald Trump withdrew from the Iran nuclear deal in May, and Washington plans to reimpose sanctions on Tehran next month. The first round of US sanctions on Iran goes into effect in August, followed by the ones targeting Iran's oil exports in November.