EghtesadOnline: Iran Fara Bourse, the over-the-counter stock market, will host the initial public offering of an investment company on Monday.
The IPO includes 500 million shares of Mehr Ayandegan Financial Development Group Company, representing 5% of its stakes, according to Financial Tribune.
It is expected to generate 2.8 trillion rials ($21 million) for the company, the IFB website said in an offer notice.
Each legal and individual investor will be eligible to purchase maximum 500 shares at prices ranging from 5,150 rials to 5,625 rials.
Investors are required to place order via book building method, which is a process by which an underwriter attempts to determine the price at which an IPO will be offered. Price discovery involves recording investor demand for shares before arriving at an issue price.
MFDG is the Staff Welfare and Retirement Fund of the oil industry with registered capital of 10 trillion rials ($76 million). It is active in asset management and other financial services.
The company’s IPO is the 14th of its kind undertaken by the IFB since the beginning of current fiscal year that ends in March. Four companies were also listed on the Tehran Stock Exchange during the past 11 months.