Iran va Sharq Leasing Went Public
* Today, 10%, equal to 30,000,000 shares, of Iran va Sharq Leasing Company were offered for the first time to investors, having been listed on Iran Fara Bourse Second Market, via the book building method with its price ranging from IRR 1,433 to IRR 1,570. Each individual and institutional code were allowed to purchase 400 shares at most. Estimating IRR 280 bn and IRR 100 bn in income and net profit in 2017/18, which registers a 48% growth compared to the last year’s projections, the company has managed to cover 36% of its income in the first half and 46% of its gross profit in the 9-month period and has also announced its full ability to cover the whole predicted net profit in the remaining quarter relying on new resources worth IRR 210 bn. This has been the fourth IPO in the current year in Iran Fara Bourse.
SEO Serious about Iran’s Capital Market Improvement
* Confirmed by the Minister of Economy and Financial Affairs, the Securities and Exchange Organization of Iran (SEO) announced the instruction for halting and re-opening tickers. According to this instruction, halted tickers will be re-opened within a 60-90-minute period; however, in case of extraordinary conditions, the halting period should not exceed 20 days most. If necessary, issuers might apply for another 10-day halting period to release information but tickers will not, for no reason, remain halted for more than total 30 days. In case companies fail to keep their promise within this 10-day period, the ticker will be reopened by the SEO and market practitioners will be informed to take the company’s failure in providing the necessary information into consideration when trading.
Fingers Still Pointed at Central Bank of Iran
One month has passed since the Central Bank of Iran’s new directive on lowering the interest rates, not more than 15% on long term deposits and 10% for short term ones, was announced while the criticisms are still fresh; in fact, they are mostly pointing fingers to the 11-day gap between the announcement and the implementation of this directive. In Response, the governor of the CBI has stressed that the sudden implementation would only create concerns and chaos leading people to take their money out of banks, adding to the liquidity volume or damage other parallel markets. Referring to the recently seen decline in depositors’ interest in longer-term deposits, Mr. Seif said that the latest statistics demonstrate a more than 10% drop in short term deposits reaching from 35.9% to 25% as the result of this directive. In the meantime, in a meeting held today between the governor of the CBI and the Minister of Economy and Financial Affairs, the minister explicitly announced that those banks which offer higher than set interest rates will be obligated to pay tax as their punishment.
IMF Hailing CBI Efforts in Iran’s Economy
* Over its latest consultation mission to Iran, the International Monetary Fund praised Central Bank of Iran’s efforts to confront with uncertified credit institutes, which had become competitors for legitimate banks in attracting funds; curbing the inflation to hit 1 digit figures was also another point approved by this body. In order to maintain the stability of macroeconomic indicators, the IMF also advised the CBI to closely monitor foreign exchange rates along with implementing the required reforms in the banking sector.
Iran’s Private Sector Further Cooperation with Spain
* Focused on tackling banking hurdles along with insurance coverage, Iran’s private sector has sat with officials from CESCE that has been offering export credit insurance services to companies working with Iran even during the time of sanctions. The Iranian delegation, led by the Chief of Iran Chamber of Commerce, Industries, Mines and Agriculture, has also had negotiations with a Spanish bank to accelerate the process of removing obstacles, in addition to talks with a Russian bank to build the correspondent relations.
Audit Organization of Iran in Charge
*After 2 years of dispute and discussion over who is in charge of setting financial reporting standards between the Central Bank of Iran and Audit Organization of Iran, the Minister of Economic Affairs and Finance announced the Audit Organization of Iran as responsible. The first steps to oblige banks to use international financial reporting standards in order to link Iranian lenders with their foreign counterparts were taken by the CBI after the JCPOA was implemented; this later faced complains by the Audit Organization of Iran demanding banks to respect its rules and standards in preparing the reports, which consequently resulted in 2 sets of statements. Based on the Minister directive, the Audit Organization will from now on be the sole entity in the country for setting and devising auditing as well as accounting standards.
Foreign Banks back in Iran’s Economy
* France’s government investment bank BPI is to provide 500 mn euro annually for financing projects implemented by French companies in Iran since 2018. As the bank CEO has said, they will not be accused of breaking any left sanctions since they do not have any operation abroad.
Rishmak Went Public
* In today’s session, 11,492,822 shares of Rishmak Production & Export Company, with the ticker RPEZ1, were offered to investors for the first time in Iran Fara Bourse’s second market via the book building method. Each code, both individual and institutional, were allowed to place purchase order for 200 shares with its price ranging from IRR 6,607 to IRR 6,740. At the end of today’s affairs, 101 shares were allocated to each code.