ipo Archives - Iran News Daily

IPO to offer more shares of state companies next year

reporter 1222 — Tue, 03 Mar 2020 09:37:00 +0000

TEHRAN (Iran News) – Head of Iran Privatization Organization (IPO) said on Tuesday that the body plans to continue offering state-run companies’ shares to the private sector in the coming Iranian calendar year (starting March 21, 2020).

According to Alireza Saleh, the IPO has had a list of its companies to be privatized this year, including shares of state-run refineries and those of Heavy Equipment Production Company (HEPCO), but has not been successful to divest all of the planned stakes.

“The remained shares will be offered in 18 stock firms and companies next year,” he said.

In its planned budget for the current Iranian year (ends on March 19, 2020), the Iranian government was expected to earn some 106 trillion rials (about $2.5 billion) of income from divesting shares of state-run companies to the private sector.

In Iran, implementation of a privatization plan aimed at more productivity, investment making, job creation, promotion of trade balance, more competition in the domestic economy, and reducing financial and management burden on the government has been under the spotlight over the past decade.

The law on the implementation of the general policies of Article 44 of Iran’s Constitution on privatizing state-owned companies was declared in 2006 in a bid to downsize the government and promote the private sector’s role in the national economy.

The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year. Under the present interpretation of Article 44, some state-owned companies have been privatized to reduce their financial burden on the country’s budget and also increase their productivity.

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Saudi Crown Prince Permitted Aramco IPO

reporter 1222 — Sat, 02 Nov 2019 13:52:01 +0000

TEHRAN (Iran News) – Saudi Crown Prince Mohammed bin Salman finally gave the go-ahead for the initial public offering of Aramco.

The crown prince made the decision of Aramco IPO at a meeting he chaired on Friday and an official announcement is likely as soon as Sunday, according to people familiar with the matter, who asked not to be named before an official statement, Bloomberg reported.

The partial privatization will be a deal like few others and the biggest change to Saudi oil industry since the company was nationalized in the 1970s. Aramco, which pumps 10% of the world’s oil from giant fields beneath the kingdom’s barren deserts, is the backbone of the kingdom’s economic and social stability.

First suggested by the prince in 2016, Aramco IPO was delayed several times as international investors balked at the $2 trillion valuation he placed on the company. An earlier plan to kick off the share sale in mid-October was shelved after bankers received lukewarm interest from money managers, and the deal will likely rely heavily on Saudi money.

It is not clear if the prince is willing to accept a lower valuation, but he may need to be satisfied with a figure closer to $1.7 trillion, if he wants the deal to go ahead, people have said.

In a bid to make the stock more attractive, Aramco plans to pay $75 billion in dividends next year. That would give investors a yield of 3.75% if the company achieves its ambition of a $2 trillion valuation. That’s a decent payout in a low-interest-rate world, but it’s a lower dividend yield than at other big oil firms.

Investors who buy into the IPO have been guaranteed that the dividend won’t fall until after 2024, regardless of what happens to oil prices. Instead, Aramco will cut back on payouts to the government if it has to reduce the total dividend to less than $75 billion.

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Containerization in need of investments

reporter 1222 — Wed, 14 Feb 2018 07:28:54 +0000

TEHRAN- Iran owns 229 container ships, which contributes to 1.1 percent of the global capacity, but containerization is in dire need of attracting investments, Mohammad Rastad, head of Iran’s Ports and Maritime Organization (IPO), stated.

Making the remarks in the 25th Conference of Coordinating Marine Organizations of Iran on Tuesday, the official said: “Some 145 million containers are transported annually across the globe, of which Iran’s share is about 3 million containers that are mainly carried to Iran by foreign transportation systems.”

The official, elsewhere, underlined competitiveness as an important factor in improving ports in the country.

Referring to multidimensional transportation, Rastad added that an international counsellor has been employed at Shahid Rajaiee port, in south of Iran, in this regard.

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Nearly $90m of state-owned shares divested in 10 months

reporter 1222 — Tue, 30 Jan 2018 11:40:55 +0000

TEHRAN- Iranian Privatization Organization (IPO) has transferred 4.054 trillion rials (about $89.59 million) worth of the state-run shares to the private sector during the ten-month period ended on January 20, Tasnim news agency reported on Monday.

The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year.

The speaker of IPO announced that in its planned budget for the next Iranian calendar year 1397 (starting March 21, 2018), the government expects to earn some 106 trillion rials (about $2.34 billion) of income from divesting shares of sate-run companies to the private sector.

“The gained income from offering governmental stakes in the next year’s budget has witnessed no rise in comparison to that of the present year and is much more less than the earned figure in the preceding Iranian calendar year 1395 (ended March 20, 2017),” Ja’far Sobhani told IRNA in early January.

“In 1395’s budget plan, IPO was supposed to earn 165 trillion rials (about $3.64 billion) and could manage to gain almost 100 percent of the predicted income,” he added.

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Over $30m of state-owned shares divested since March

reporter 1222 — Mon, 04 Sep 2017 07:44:35 +0000

TERHRAN- Iranian Privatization Organization (IPO) has transferred 1.174 trillion rials (about $30.21 million) worth of the state-run shares to the private sector since the beginning of the current Iranian calendar year (March 21, 2017).

IPO plans to transfer the shares of some 337 state-run companies to the private sector by the current Iranian calendar yearend (March 20, 2018).

The Iranian governmental body has classified 337 Iranian governmental companies in two groups and is ready to transfer their stakes to the private sector by yearend.

The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year.

Under the present interpretation of the Article 44 of Iran’s Constitution, hundreds of state-owned companies have been privatized.

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