Beh Pardakht-e Mellat Went Public
It has been a few months without any IPOs, despite there are some large companies waiting in the line; the reason to such withholding has said to be the unsatisfactory conditions in the market. The All-Share Index so far has been 7% with equity investment funds registering less than 3% return; to this, the low value and volume of trades must also be added. Although some specific shares catch investors’ eyes every now and then, a steady ascending trend is still not observed in the market.
Despite the general belief that assumes the IPO against the market benefit, however, today, 5% of Beh Pardakht-e Mellat Company, as a subsidiary to Bank Mellat, equal to 47,500,000 shares, belonging to Behsazan Houshmand-e Fanavaran Group went public in the Tehran Stock exchange via the book building method; its prices ranged between IRR 16,670 to IRR 17,500 with each individual being allowed to buy 2,000 shares at most. The company’s capital has reached from IRR 120 bn in 2012 to IRR 950 bn in 2017; it has made IRR 3,490 bn operating income in 2017, resulting in IRR 2,540 bn net profit. The largest part of its revenue comes from Shaparak transaction system with 35.5%, offering services to other with 53.2% and its contract with Bank Mellat with 11.3%.
Having a 6% share of the electronic payment market and IRR 27,000 bn in capital, Asan Pardakht-e Persian, which was IPOed in the year before, has benefited its shareholders with more than 180% return since then. Beh Pardakht-e Mellat is in possession of a 34% share in this market, making it the leader of the market and its brand equity and development plans seem to be enough to guarantee such a market share in the future.
- Iran Khodro has made IRR 147 EPS for the FY ended 20 March 2017, which shows a 172% increase compared to the same period last year; covering 103% of its last projections, the company has recognized IRR 576 retained loss, with a 35% decline compared to the year before.
- Tabriz Oil Refining has made IRR 981 EPS for the FY ended 20 March 2017 while it had realized IRR 237 loss per share in the same period last year; the company has managed to cover 282% of its final estimates.
In the Market
In line with the IPO in the Computer sector, Beh Pardakht-e Mellat, which was done after the market hours, other names also went through balanced and positive trades, led by Iran Data Processing which nearly went up 3%. Iran Arqam also rose by more than 4%.
Nearly the whole Automotive industry finished above their flat lines with Rena Investment Holding, Niroumohareke, Iran Automobile Spare Parts and Motorsazan Iran Tractor going up more than 4%; Iran Khodro also faced a buy queue during the session, just like the previous session; 24.6 mn of its shares, worth IRR 64 bn were block traded in the retail market and the ticker was halted at the end of the session to hold its general annual meeting.
Renault company announced a 10.4% growth in the half of the current year in its sales since returning to Iran’s market, which is 4 times the average growth of the sector in global markets.
Just like the previous session, two block trades were done for Bank Ansar and Bank Eqtesad Novin in the Banking sector, with 137 mn and 32 mn shares being traded, respectively. The whole sector went through balanced trades. The CBI also issued the 87.5% capital raise permission for Bank Ayande to raise its capital from IRR 16,000 bn to IRR 30,000 bn.
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