Residual Shares Nobody Wants

EghtesadOnline: The remaining shares of government in Shiraz Oil Refining Company and Alborz Insurance Company were offered in the stock market but had no buyers.

News ID: ۷۴۷۸۸۲

16 July 2019

As per earlier announcements by Iran Privatization Organization, Shiraz Oil Refining Company offered the residue of government assets in a block of 1.27 million shares in the junior stock market, Iran Fara Bourse, on Monday.

The block accounted for 20% of the total shares of the company worth 7.2 trillion rials ($56 million).

The base price for the shares of the company was set with no prices shown on the market bulletin a day prior to the offering plus 20%, Financial Tribune reported.

On Saturday, Alborz Insurance Company also failed to find buyers for its shares offered on Tehran Stock Exchange.

The company offered 17.34% of its shares worth 1.1 trillion rials ($8 million) in a block of 639.56 million pieces.

Twenty percent of shares of Lavan Oil Refining Company is scheduled to be offered today (Tuesday). The shares will be offered in a block of 228.6 million pieces via IFB.

The divestiture will be handled by IPO and is in line with Article 44 of the Constitution that offers opportunities to private enterprise, promotes downsizing and curbs the bloated bureaucracy.

The initiative is part of a broader government plan to divest its remaining shares in 18 companies.

Remaining assets on sale include a 20% stake in state-owned oil refineries in Tehran, Tabriz, Bandar Abbas, Esfahan, 17% stake  in Tejarat Bank and Bank Mellat each, 18.3% in Bank Saderat Iran, 11.44% in Amin Reinsurance Company, 18.96% in Persian Gulf Petrochemical Industries Company, 12.05% in National Iranian Copper Industry Company, 17.2% in Mobarakeh Steel Company,14.04% in Iran Khodro (IKCO), 23% in SAIPA, 40% in Pars National Agro-Industry and Animal Husbandry Company, and 13.02% in National Investment Company of Iran.