IPO called for the companies’ preparation to become privatized, Ali Kardor told MNA.
A delay is inevitable in the companies’ allocation till the time the related negotiations take place, he noted.
National Iranian Oil Refining and Distribution Company (NIORDC), Pars Special Economic Energy Zone Co., National Iranian Gas Company (NIGC), National Petrochemical Company (NPC), National Iranian Oil Products Distribution Company (NIOPDC), National Iranian Gas Export Company (NIGEC), National Iranian Oil Engineering and Construction Company (NIOEC), Iranian Fuel Conservation Organization (IFCO), Iranian Gas Engineering and Development Company (IGEDC), National Iranian Oil Pipeline and Telecommunication Company (NIOPTC), Petrochemical Terminal and Tank Farm Company (PTTC), and South Pars Gas Complex (SPGC) are among the companies.
According to the Fourth Five-Year Socioeconomic Development Plan (2005-2010), the POI affiliated to the Ministry of Economic Affairs and Finance is in charge of setting prices and ceding shares to the general public and on the stock market.
In 2007, Supreme Leader Ayatollah Khamenei requested the government officials to speed up the implementation of the policies outlined in the amendment of Article 44, and move towards economic privatization.
The current privatization effort calls for an initial public offering (IPO) of five percent of the firms being privatized. Once the five percent is public, it will establish a market price which further offerings can be based on.
According to a study conducted by the International Monetary Fund (IMF) in 18 countries, privatization adds two percent to the government’s gross domestic product (GDP) per annum.
NK/KK
END
MNA
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