- Tomorrow, Pegah-e Fars Company’s shares will go public. Having predicted its EPS to be 426 IRR, this company could recognize 100 IRR in the first quarter. The intrinsic value of this stock has been calculated to be 6,340 IRR and as experts believe, on the account that most companies in this sector are traded 50% below their intrinsic values, 3,000 IRR price area seems to be the theoretical trade price. On the other hand, since the share’s P/E will be close to 7 at such a price, it would not be a logical suggestion. Furthermore, in order to enjoy a profitable sale, shares are better to be supplied at prices way lower than their intrinsic values; as a result, 2,000-2,400 IRR is estimated to be more appropriate until the shares reach the 3,000 IRR for balance in the mid-term.
Today, the treasury bills, with the ticker Akhza11, were initially offered to investors at an approximate 11% discount par value in Fara Bourse. As a solution to direct wandering capitals to the market, these bills enjoy an interest rate higher than that of paid to bank term deposits at 20%. The minimum volume of the initial offering is determined to be 400,000 bills with the maturity date of March 13, 2016 and according to the authorities, there is no limitation regarding the minimum and maximum purchasing times. Holding the nominal value of 1,000,000 IRR per bill and being cleared and settled by the CSDI in T+1 business days, 383,837 bills were sold at 900,501 IRR at the end of today’s trading session.
Referring to the existing rules and regulations regarding the quality of foreign investment in Iran, SEO’s Deputy for Executive Affairs discussed the methods of attracting foreign capitals. He stated that the limitation regarding the 100% ownership by foreign investors has been removed in some occasions. Insisting on the fact that the most important goal is to boost and reinforce financial institutions from international sources, he continued to say that foreign investment in the country must result in the transfer of technology from advanced financial markets to the domestic ones.
- In a meeting between Dr. Fetanat and the England embassy consular, both parties insisted on the importance of bilateral collaboration between Iran’s capital market and London Bourse, expressing hopes over the facilitation of foreign investment process in the country. Explaining Iran’s capital market capacities and opportunities, Dr. Fetanat addressed the conducted attempts aiming at increasing transparency in the market and the dominance of international financial and accounting standards on the listed companies. He also mentioned the attempts to establish cooperation with international credit rating agencies, including Fitch Company. In response, referring to England’s experience and background in using financial instruments such as futures and option, the British authority announced England’s readiness and interest in sharing their accomplishments in establishing an exchange currency bourse in the country.
On the second Europe-Iran Conference, held in Geneva on Thursday the potential investment opportunities were explored and discussed in the post-sanctions era by both sides. According to participants in the forum, beside its above 80 million people population and large natural resources reserves, Iran has been occasionally reported to be the biggest country to enter the global financial system since the breakup of the Soviet Union. At the moment, most foreign companies are waiting for the final implementation of the JCPOA early next year and Iran’s re-connection to global networks, notably SWIFT in order to start transferring their funds to the country.
IFB’s CEO announced first-ever treasury notes are planned to be offered within the coming week, adding that it is a kind of new financial instrument aimed at settling government’s long-awaited debt with private contractors. He further remarked that the Treasury’s price will be discovered in the normal trading sessions via supply and demand mechanism. Being guaranteed by the government, the objective of issuing such type of securities is to form financial discipline in Islamic treasury notes under the banner of modern financial instruments on IFB to clear debts owed by the government.
Petrochemical products’ getting off the IME’s screen will not happen; the exchange market is the most transparent place to trade petrochemical and other commodities, said Soltani Nejad, IME’s CEO. He also added that trading commodities out of the exchange market framework will be accompanied with product delivery risks. Citing the fact that Iran is one of the commodity pricing references in the world, he stated that since Iran enjoys relative advantages in petrochemical industry and oil products, it can act as a proper reference for legislation and pricing such commodities. He also insisted on the fact that the reported exit might be equal to retreating from the international capital markets and thus, it is absurd to turn back to the old and unclear billing system.
In a meeting with SEO’s CEO, South Africa’s Stock Exchange Regulatory Chief Officer expressed hope over the expansion of cooperation between the two countries’ Stock Exchanges. Consequently, signing a cooperation agreement between the two regulatory organizations was proposed aiming to implement joint projects. Calling Iran’s Islamic Capital market along with the available instruments a successful sample in the world, he hoped to see more ties between the two markets in terms of brokerage firms, investment funds, and depository companies. At the end, Dr. Fetanat invited him to participate in the Foreign Investment Conference in Iran in December.
According to chemicals sector experts, this market has been in need of demand boost which was realized having removed the yearly upper limits; this trend was strengthened by dollar price spike contributing to the trade volume increase, which altogether have drifted this industry away from the prevailing recession to some extent in the last week. Relying on market watchers, the present time seems to be proper to take long positions on these products as a result of which more demand and trade volume are predicted in the current week.
Damavand Power Generation Management Company, a company in the utilities sector and with the ticker BDMZ, as the largest electricity supplier in the Middle East and second company in this category being quoted on IFB after Bargh Mapna is ready for an IPO of about 10 percent of its shares. Company’s capital stands at $13.4 mn and intends to conduct a capital raise up to $146.2 mn from either financing through claims due from the government or retained profits or both after public offering performance of the company.