EghtesadOnline: Persian Gulf Petrochemical Industries Company has got the go ahead from the High Council of Securities and Exchange, the stock market policymaker, to set up an investment bank.
The primary significance of the move lies in the fact that establishing investment banks was forever the duopoly of banks and investment companies.
Welcoming the move, the PGPIC chief, Jafar Rabi’ei, said “the bourse council effectively broke the duopoly and allowed big industrial companies to finance [their projects] via investment banks.”
The company will start operation with an initial capital of 5 trillion rials ($22 million) via share offers scheduled for September, the company’s website quoted him as saying.
PGPIC is the biggest consortium of Iranian petrochemical producers. With a market capitalization of 2,583 trillion rials ($11.7 billion), the giant holding is the largest company listed on the Tehran Stock Exchange and the second largest petrochemical company in the Middle East with 60 plus subsidiaries.
In a bid to lift the plunging capital market, the government recently eased rules for setting up investment companies operating in the bourse.
Commenting on the bourse council decision, head of the Securities and Exchange Organization Mohammad Ali Dehqan-Dehnavi said it is line with efforts to “expand the capital market and increase the role of financial institutions.”