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Government to Publicly Offer Stocks in the Form of ETF

Following the prior announcement of the Minister of Finance and Economic Affairs regarding the offering of stocks of state-run companies in the form of ETFs, the said Ministry called for the subscription of such ETF units.

 

Following the prior announcement of the Minister of Finance and Economic Affairs regarding the offering of stocks of state-run companies in the form of ETFs, the said Ministry called for the subscription of such ETF units.

Based on the current annual budget of the Government and the Cabinet’s approvals, the Ministry of Finance and Economic Affairs on behalf of the government intends to offer the remaining stocks in three banks and two insurance companies. This will be an exceptional opportunity for all Iranians to own the stocks of credible state-run companies. This is the latest decision of the Government aiming to privatize the economy through the capital market.

The 20 percent discount is the main advantage for Iranians. The unit price in the day of subscription is the average price of the stocks during the last 30 days, plus a 20-percent discount. Five percent of this amount will be deposited in the fund as the investors’ assets, and for market making purposes.

The subscription of these units will be available only for Iranian retail investors, so legal investors are not authorized to join the subscription. The subscription period will be from 3 to 20 May, 2020.

The subscription for trading account owners will be done through brokerage companies, online trading platforms, virtual platforms and selected banks upon presence; while non-trading account holders may proceed via either virtual platforms or selected banks upon presence.

Due to rampant Coronavirus and for safety and health reasons, it is strictly advised for investors not to refer personally to the brokerage companies and banks, and try to subscribe virtually via online terminals and virtual platforms.