Page 41 - IRANRptAug20

8.4 ​Fixed income
8.4.1​Fixed income - bond news
Iran’s Gumtree-clone Sheypoor to IPO on OTC market in Tehran
All shares in Iran’s biggest ever IPO snapped up
Sheypoor (“Trumpet”), one of Iran’s two biggest classified ads and other listings websites, has announced that it will offer shares on the country’s over-the-counter (OTC) market as part of its efforts to raise more capital, Digiato has reported.
Iran’s e-commerce market has modelled itself on international counterparts over the past decade, with like-for-like companies using business models that have proved successful elsewhere inside the Islamic Republic. Sheypoor might be said to be rather similar to the UK's Gumtree.
Sheypoor is pipping another contender, Iran’s answer to Amazon, DigiKala, as the first digital company to IPO. Despite rumours it has been preparing an equity market debut, DigiKala has remained in private hands including those of investment company Sarava Pars, which has investment capital from Nordic countries and Russian investors.
International investors wishing to purchase shares in Sheypoor must register with the investment authorities beforehand to obtain an “investment passport”. Majid Ant, financial director at Sheypoor, said the OTC sale will start this summer after board of director discussions.
"The advantage we have... is that Sheypoor has a longer history than most startups and has a clear audited financial statement," he said.
He added: “Our financial reports have been flawless and have been clear in the financial statements, we have been working for many years.
“So, we are fully acquainted with the challenges of the job and we know where the knots are. Therefore, we are moving forward in a more calculated way and we have a complete plan. As a result, Sheypoor has many advantages over others."
Iran’s largest-ever initial public offering (IPO) occurred on April 15 with the government floating a 10% stake in the Social Security Investment Company (SHASTA) on the Tehran Stock Exchange (TSE).
The entire stake of 80bn shares was sold at Iranian rial (IRR) 8,600 per share, with the flotation estimated to have earned IRR68.8tn ($430mn at the free market rate, $1.63bn at the government rate).
Private investors who snapped up some of SHASTA at the TSE—lately moved to a brand new building in the north of Tehran—now own part of an organisation that is home to large swathes of Iran’s insurance market and pension portfolios.
Shasta controls nine entities in sectors including petrochemicals, pharmaceuticals, petroleum, transportation, cement and finance. Its controlled companies include Iranian shipping line IRISL, National Iranian Copper Industries (NICICO), Mobarakeh Steel, Iranol Oil and Jam Petrochemical Co. Iranian President Hassan Rouhani hailed the IPO as historical, saying around 2mn investors benefited from the stock market sale.
41​ IRAN Country Report August 2020 www.intellinews.com