Iran Capital Market Hosting “Omid” on
* Today Iran Capital Market hosted a new IPO after nearly 2 months as the 11th IPO on the Tehran Stock Exchange (TSE) where 10%, i.e. 490 mn shares of Omid Investment Bank, the first of its kind, were offered through the book building method; each code, both individual and institutional, were allowed to put purchase orders for 10,000 shares with each share price ranging from IRR 1500-1600; at the end of the process. Market making services are set to become compulsory in the upcoming future which picture a bright future ahead such companies. Besides, the ongoing development of Iran securities market and the introduction of new financial instruments can offer growth potential for investment banks. The company has raised its net profit for the next FY by 10%, announcing to make IRR 293 EPS. It is worth mentioning that Gol-e Gohar (12.1%) and Chadormalu (17.8%) Mining and Industrial companies are among the company shareholders.
* A IRR 100,000 bn worth of MoU was signed between Iran’s Ports and Maritime Organization and the Private Sector to invest in ports in the country, including Shahid Rajaee in south and Anzali in north.
* An agreement was inked between Iran and the Czech Republic for investments in fields, including car and spare part manufacturing on Monday, which is deemed by the Minister of Economic Affairs and Finance to pave the grounds for cooperation with other EU member.
In the Market
Today’s IPO resulted in more offerings, dragging names in the Automotive space into the red. Except from Iran Tractor Forging (ATIR1, +3.5%), nearly the rest shed 2% on average.
The news on the lowering of import tariff on 4 Iranian products, including cement and food, by 10-40%, directed investors’ attention to the both groups. Cement tickers witnessed a rise in demand, also gains were not comparable to the previous session; some failed to keep their early earned ups through the closing bell.
Likewise, nearly the whole Construction space also settled with good gains led by Sakht Ajand (SAJN1) and Shahed Civil and Development (OSHZ1).
Following efforts to tackle impediments ahead of bilateral trade between Iran and Iraq, it was agreed that Iranian food and dairy exported products will be cleared without undergoing border examination and screening on the condition that Iranian organization provide the quality approval certificate within Iraq’s rules and regulations. Some dairy products companies in the Food & Beverage sector like Pegah-e Golpayegan Dairy faced a buy queue right from the start, although failed to keep it. Eventually, names went through rather balanced trades.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact reporters: Inter@agah.com