Tehran Stock Exchange Hosting South Kaveh Steel
* Today, 5% of South Kaveh Steel Company’s shares, equal with 350,000,000 shares, were offered for the first time to investors in the Tehran Stock Exchange via the book building method. Each share’s price ranged from IRR 1,740- 1,760 and each code, either individual or institutional, were allowed to put purchase order for maximum 7,000 shares. With IRR 7,000 bn in capital, South Kaveh Steel Company is a subsidiary to Kave Pars Mineral Industries Development Holding active in steel value chain production and sales with an export-oriented perspective. Currently, the company’s production capacity is 2.4 mn ton of billet, 1.2 mn ton of which has been exploited in the first phase. Billet production unit with 5 mn ton capacity per annum will also be exploited within the next few years. In the first half of the current year, the company has managed to cover 39% of its annual budget by selling products worth IRR 6,590 bn; it has also predicted to hit IRR 16,950 bn until the end of 2016/17, with a 90% rise compared to the same period last year. Although the company has saw 44%, 31% and 51% falling in its sales, gross profit and net profit in 2015/16, the considerable decline in the company’s operating cost has contributed a lot to its high estimated margin and net profit in the current year.