Iranian Mining Holding Seeks London Stock Exchange Listing
EghtesadOnline: Middle East Mines and Mining Industries Development Holding Company is taking steps to be listed on London Stock Exchange, announced Reza Ashraf-Semnani, advisor to MIDHCO’s managing director.
“One of London Stock Exchange’s credit rating agencies is set to evaluate and prepare a final report [on MIDHCO], which will enable the company to enter [the market],” Ashraf-Semnani was quoted as saying by the Persian daily Donya-e-Eqtesad.
The mining holding has been mulling to enter LSE for about two years now, he added, emphasizing that “no Iranian firm has attempted this before us, and this is a sign that our strategies are based on global standards.”
Established in 1773, LSE is a prominently international stock exchange with 350 companies from more than 50 countries, and is the premier source of equity-market liquidity, benchmark prices and market data in Europe. The Financial Times Stock Exchange 100 Share Index, or “Footsie,” is the dominant index, featuring 100 of the top blue chips on LSE, according to Financial Tribune.
According to Semnani, an LSE delegation is going to visit the holding in a few days. They are set to be provided with MIDHCO’s latest financial statements based on International Financial Reporting Standards, which is to be finalized soon.
MIDHCO’s shares will be priced based on the pound sterling, Semnani noted, emphasizing that the rial’s fluctuations against other currencies are unlikely to affect the company’s performance, as MIDHCO will be operating on a global scale.
IFRS are a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.
The standards are issued by the International Accounting Standards Board, and specify exactly how accountants must maintain and report their accounts.
IFRS were established to have a common accounting language, so business and accounts can be understood from company to company and country to country.
One of the main requirements for Iranian companies to return to international business community is to adopt IFRS. MIDHCO seems to be a forerunner here, as the government and Central Bank of Iran have for years pressured Iranian firms, especially the banking sector, to embrace the new standards to no avail.
Established in 2007, the $589 million MIDHCO is a mining investment company operating in steel, iron ore and copper production.