EghtesadOnline: Iran’s equity market witnessed the sixth initial public offering of the current fiscal year (March 2017-18) on Saturday, as 10% of Rishmac Company’s shares were offered to the public.
Over 11.4 million shares of the company were offered on Iran Fara Bourse using the book-building method.
At the end of Saturday trading, the price of each share of “RPEZ” was discovered at 6,740 rials and its price to earnings ratio stood at 5.3, considering Rishmac’s 1,261-rial per share earnings forecast.
Each trading code was allowed to purchase a maximum of 100 shares, which caused Rishmac to break HiWeb’s record for the number of buyers in an IPO with 114,441, according to Financial Tribune.
The company has 90 staff members and produces licorice extract powder used in foods and drugs, 100% of which are exported.
Rishmac’s current market capitalization stands at 813.3 billion rials ($20.91 million) and its fiscal year ends on December 21.
Rishamc’s IPO followed HiWeb, Chador Sazan Company, Parsian Kowsar Hotel, MobinOne Kish and Behpardakht Mellat’s offerings respectively. Most of the IPOs have been warmly received so far, with HiWeb and MobinOne still topping trade charts.
Before the recent offerings, all IPOs on the Iranian equity market had been suspended since early February, due to what the Securities and Exchange Organization referred to as an attempt to support investors and prevent liquidity flight.