Shares of State Companies Worth $733m on Offer

EghtesadOnline: More than 8.7 billion government-owned shares in Tehran Oil Refinery Company and Isfahan Oil Refinery Company worth 88 trillion rials ($733 million) will be offered in the capital market in the coming week.

News ID: ۷۴۸۰۰۲

28 July 2019

The remaining government assets in Tehran Oil refinery Company accounts for 20% of the total shares of the company worth 40.9 trillion rials ($340.8), which will be offered in a block of 4.7 billion pieces.

Share prices on the market bulletin a day prior to the offer plus 20% will be considered as the base price. However, the base price should not be less than 8,510 rials per share.

The shares will be offered in the Second Market of Tehran Stocks Exchange on July 31, Financial Tribune reported.

In addition, the residue of the government shares in Isfahan Oil Refinery Company worth 48.9 trillion rials ($403.3) will be offered in a block of 3.9 billion shares.

The offer is scheduled to take place on the First Market of TSE on August 3, according to two notices published in the official website of Iran Privatization Organization.

Prices shown on the market bulletin a day prior to the offer plus 20% will be considered as the base price with the difference being that the final price must not be less than 12,023 rials.

Proxy in Charge

As a proxy of National Iranian Oil refining and Distribution Company, IPO will be in charge of offers in the stock market.

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

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

IPO’s earlier attempts to sell the remaining government stake in Alborz Insurance Company, Shiraz Oil Refining Company and Lavan Oil Refining Company on stock market met with failure as buyers couldn’t afford it.

As per earlier announcements, the remaining assets on sale include a 20% stake in state-owned oil refineries in Tabriz and Bandar Abbas, 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.