– Today, four(4) new issues of Islamic T-Bills worth IRR 43,000 bn (USD 1.02 bn) got listed on Iran Fara Bourse ready for their initial public offering any time now. These new debt securities have maturities between 5 to 24 months and the below table demonstrate their issue details:
– Today 10% of Saman Kish E-payment co. shares went public on Tehran Stock Exchange through book building method. The price range was from IRR 6,200 to 6,500 per share and each trading code could only place an order for 5000 shares (ultimately each code received only 1,787 shares). Ultimately price at IRR 6,500, the company record a P/E ratio of 6.2 with a TTM P/E of 7.0 (the sector benchmark rate stands at 8.60). Below pie chart shows the market share of Saman Kish contrary to its other rivals in the industry.
– After the US withdrawal from JCPoA, the major concern amid Tehran Stock Exchange practitioners was the path that individual’s money will choose further upon. Funds flying to parallel markets like gold, fx or even housing kept the capital market investors up for nights. The recent trends show that the individual investors’ sentiment is now in favour of equities again and trading values are the facts to that. Below images demonstrate a clear picture of the net inflow/outflow of funds during that stressful period along with changes in the trading value of the market.
– After the previous successful underwriting of IRR 4,500 bn (USD 107.14 mn) worth Sukuk Ijarah for Iran Telecommunication Company, a new round of corporate Sukuk Ijarah (equity backed) now worth IRR 8,000 bn (USD 190 mn) is to be published on Tehran Stock Exchange. The underlying asset of this new issue is 567,818,866 shares of HMRZ1 priced at IRR 14,089 apiece. The yield would be 16%, payments scheduled for every 3 months (quarterly) and these securities will be matured in 4 years.
– After massive impacts on Tehran Stock Exchange mostly due to the volatility of USD/IRR over recent months, a member of SEO’s high council announced three solutions on agenda in order to prevent future effects of such fluctuations. A) Establishment of FX-denominated mutual funds, B) Issuance of foreign currency denominated debt securities and C) FX-denominated hedging instruments (derivates) are among the “to do list” of Iran capital market regulator. According to the officials, SEO has now the required infrastructure to make mutual fund idea operational. Said funds are able to purchase Iranian banks LCs to exporters, Government or corporate FX denominated bonds or deposit in banks’ currency accounts.
Tehran Stock Exchange went up by 342 points mostly influenced by mega-cap names like Esfahan’s Mobarake Steel and also thanks to better than expected Q2 performances of Metal producers. However, the value of trades in both the TSE and IFB was light ahead of the upcoming holidays.
– Following the foreign investors’ entrance to the real part of Iran’s economy, a female individual investor submitted her request to buy an 18.84% stake in Asia Insurance Co, (one of the Iranian Insurance Sector blue-chips) to the Central Insurance of I.R. Iran. Right now the SEO is evaluating the customer (KYC process) along with the possible routes of fund transfers. Earlier last year, Iranian government officially divested from Asia Insurance Company complying with latest privatization directives.
– In an interview, the head of the Securities and Exchange Organization of Iran enumerated the reasons for the 27% growth of the Tehran Stock Exchange major index (TEDPIX) in the current year. Referring to the whole trading value (4 exchange markets) exceeding IRR 2,100,000 (cUSD 47 bn) bn, he firstly mentioned President Rouhani’s administration’s economic policies to lower interest rate on banking deposits, which also dragged bonds yield rate and therefore, financing costs for companies down as well. Another factor was companies’ profitability growth, mostly due to facilities offered by the government and global commodity prices soar. A part of this growth was due to the USD/IRR increase, which raised export-oriented companies’ income. Applying changes to the halting-reopening mechanism of the market to accelerate the whole process played another crucial role by increasing the market liquidity. To all these, the reduction in trading commission must also be noted, which will show its positive effect in the long run.
– With IRR 1,180 bn in the capital, 117,943,000 shares, equal to 10%, of Shafa Darou Investment (SHFA1) went public on Tehran Stock Exchange through book building method ranging at IRR4,000-IRR4,150. The company is owned by Ayande Pouya (81%), Tose’e Melli Investment Group (13%) and Tose’e Melli Investment (5%). Each investor, both individual and institutional were allowed to purchase 1,500 shares at most, whose price discovered to be IRR 4,150.
– Today 10% of Shouyande (detergent) Industry Management Co. (SHOY1) offered to public on Tehran Stock Exchange and 100 mn shares of the company got listed among Chemical tickers. The estimated price range during book building was from IRR 2,600 to IRR 2,730 and finally the ticker priced at IRR 2,730. SHOY1 is a subsidiary of Behshahr Industries holding (TSBE1) with its main focus on detergent production. The company’s sales are expected to rise 30% in upcoming year despite the surge of its revenues by 11%. The forecasted EPS for FY2018/19 is IRR 420 which make the P/E ratio 6.4.