EghtesadOnline: Isfahan Zinc Smelting Company plans to offer 10% of its shares on Iran Fara Bourse, the over-the-counter stock market, in an initial public offering on Tuesday.
The offer includes 60 million shares of the company and investors are required to place orders on prices ranging from 13,700 to 14,000 rials per share, IFB website reported.
Each legal and individual trader can buy a maximum 100 shares. Investors can place order through book-building method, according to Financial Tribune.
Book building is the process by which an underwriter attempts to determine the price at which an IPO will be offered. The price discovery involves recording investor demand for shares before arriving at an issue price.
IZSC manufactures zinc ingots in Isfahan. As stated in its website, the company’s production capacity exceeds 15,000 tons per year. It started operation in 1998.
The company’s IPO is the 12th of its kind that is going public on IFB since the beginning of current fiscal year on March 20, 2019. Four companies have been listed on Tehran Stock Exchange in this period.
The number of IPOs in Tehran Stock Exchange and Iran Fara Bourse grew two and a half times in the first nine months of the year compared with the same period last year.
Stock market officials say more companies will be listed before the current fiscal year is out in March.