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Mahdi Seifollahi, global market development manager at Mofid Securities in Tehran, spoke with ​bne IntelliNews​ about the IPO and his thoughts on the country’s stock market moving forward.
"The government has already announced its intention to sell some government-owned shares in 1399 [the 2020/2021 Persian calendar year that started on March 20]. It is basically due to its privatisation plan. Other companies are set to come on to the market if the government recognises the SHASTA IPO as a success," Seifollahi said
"Also, it [an IPO] absorbs some of the liquidity in the market at no extra cost. SHASTA is almost the last company in this government tree to go public. Only two companies are remaining. The government doesn't lose control over these companies when they go public. It is just one way to absorb money from society," he added.
9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1​ Oil & gas sector news
Iran ‘to stop exporting condensates in favour of gasoline, naphtha production’
Iran reportedly has plans to stop exporting gas condensates. It would instead refine the volumes domestically to produce gasoline and naphtha, according to an interview with the country’s oil minister Bijan Zanganeh.
Speaking on state radio on May 25, Zanganeh said the plan was to add value to the light hydrocarbons. The exports of condensates would be brought to a halt during the current Iranian year that ends in March 2021.
"All these gas condensates will be refined in the Persian Gulf Star and Siraf refineries ... to gasoline and petrochemical units feedstock," Zanganeh added, without disclosing what condensate volues Iran has been exporting. Iran faces great difficulties in finding buyers for its oil due to a US sanctions policy launched in May last year aimed at pushing all Iranian crude exports off world markets.
The Persian Gulf Star refinery currently receives 420,000 b/d of gas condensates, according to S&P Global Platts. The news service added that the Siraf project, first announced in 2014 but yet to be built, encompasses six plants with a total refining capacity of 360,000 b/d of gas condensates. It will be located at the Persian Gulf complex, which is adjacent to petrochemical plants in the region. Naphtha can be used in olefin plants to produce plastic, among other products.
Iran’s section of the giant South Pars gas field in the Persian Gulf, which also stretches into Qatar's waters, is Iran's foremost source of condensates. Zanganeh said South Pars and nearby fields can produce up to 1mn b/d of gas condensates.
In early February, according to Platts, the minister said that about 130,000 b/d of the country's gas condensates feed its petrochemical plants and 80,000 b/d goes to domestic refineries, apart from Persian Gulf Star.
40​ IRAN Country Report June 2020 www.intellinews.com