Guidelines Approved for Starting Specific PJSCs
EghtesadOnline: The Securities and Exchange Organization has approved regulations for setting up public joint stock companies whose main function will be project funding.
A “Project Public Joint Stock Company” would complement the stock market and facilitate funds for economically viable projects, said Meisam Tahmasebi, a supervisory official at the SEO.
“Project companies will help fund megaprojects technically and economically justified,” he was quoted as saying by the Securities and Exchange News Agency.
The “project company” should be affiliated to a public joint stock company listed with the stock market. It will act as the financier of the parent company.
The minimum capital needed to set up a project company would be five trillion rials ($20 million) and owners are required to secure half the capital before offering shares to the public.
The main shareholders contribution would be in kind including assets such as land, buildings and machinery.
However, intangible assets such as brand, trade mark etc. will not be accepted as the investor(s) contribution to the company’s capital.