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.
* Determined to live up to international banking standards in order to prepare infrastructure and prerequisites to open branches abroad, Bank Sina CEO announced the completion of the first set phase where a roadmap was developed in fields of compliance, anti-money laundering, fighting terrorism finance in addition to preparing a strategic business plan and regulations of internal supervision under an advisory contract with KPMG Financial Services Company. The process required 150 various reports which have been delivered as the results of regular meetings along with educational workshops held by the KPMG. Munich will be the first place to host Bank Sina Branch.
In the Market
Uncertainties about whether the US administration will pull out of the JCPOA or not along with statements on the Iranian and European parties on the necessity of sticking with this agreement have intensified ambiguities, adding to the sales pressure in the market; this sentiment might continue until the end of the week and dragged the majority of groups into the red.
While metals, mostly copper, prices seem to remain on an ascending trend, oil price dropped. Contrary to the negative atmosphere dominating the Metals and Iron Ore sectors, Sepanta (5%) and Tuka Foolad Sepahan (1.03%) along with National Iranian Coper Industries (Fameli) in the former were traded positively; 5 mn shares of Fameli were also block traded in the retail market at IRR 2,032, 1.09% higher. It has been heard that the EU is planning to apply a 57-euro tariff on Esfahan’s Mobarake Metal Company’s products exported to the Europe. Damavand Mineral was the only top gainer in the latter, finishing with a buy queue.
The whole Oil Products space closed on a weak note, led by Tehran Oil Refining (-3.04%); in fact, Tehran Oil Refining and Esfahan Oil Refining started the session strong but failed to hold their gains through the closing bell. Iranol Oil (1.21%), on the other hand, eked out a small victory in today’s red market.
Facing a dilemma due to the current uncertainties, investors in the Automotive sector pushed the space into the red; Renault Company officials announced that in case JCPOA is not re-certified and the situation gets worse, they will suspend their activities in Iran. At the end of today’s session, apart from Motorsazan Iran Tractor that closed with a buy queue, only a few companies mostly active in spare part mfg. area settled a tick above their unchanged marks. Saipa (-2.54%) has experienced a 42.4% growth in its sales over the first half of the current year, compared with the same period last year.
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