Bank Saderat Iran IPO slated for June 8

TEHRAN, May 24 (MNA) – Bank Saderat Iran will be the third state-run bank which is scheduled to go public through an initial public offering on June 8, IRNA reported on Sunday.

Previously, the shares of Bank Mellat and Tejarat Bank have been offered on the Tehran Stock Exchange (TSE).

 

Bank Mellat was the first Iranian bank that offered 750 billion rials (about $77.5 million) worth of its shares on February 18. A 5% block of Tejarat Bank shares were also offered on May 18 on TSE as the second privatization-bound bank.

 

According to Iran’s Fourth Five-Year Economic Development Plan (2005-2010) the Privatization Organization of the country affiliated to the Ministry of Economic Affairs and Finance is in charge of setting prices and ceding shares to the general public on the stock market.

 

The current privatization effort calls for an initial public offering 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 in 18 countries, privatization adds 2 percent to the government’s gross domestic production per annum.

 

NK/MRK

END

MNA

News Code 33940

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