Tejarat Bank offers 5% of shares in TSE

TEHRAN, May 17 (MNA) –Tejarat Bank Managing Director Majid-Reza Davari here on Saturday stated that five percent of the bank’s shares will be offered in the Tehran Stock Exchange tomorrow.

 

IRINN quoted Davari as saying that Tejarat Bank was established in 1979, and currently has about 10.5 trillion rials (about $1.05 billion) capital, 1978 branches, and 21,298 personnel inside and outside the country.

 

Davari also stated that the bank is promoting its activities in foreign countries, announcing that in the near future the bank will open branches in Belarus, Beijing, Austria, Turkey, and Iraq.

 

Tejarat Bank is the second Iranian bank to be privatized, the first being Mellat Bank.

 

According to the Fourth Five-Year Economic Development Plan (2005-2010), the Privatization Organization of Iran 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.

 

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 IMF in 18 countries, privatization adds 2 percent to the government’s GDP per annum.

 

NK/MRK

END

MNA

News Code 33809

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