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IFB

Iran Fara Bourse

Iran Fara Bourse Securities Exchange (IFB), one of the four Iranian Exchanges, operates under supervision of Securities and Exchange Organization (SEO), a member of IOSCO. IFB was incorporated on November 12, 2008, to be a gate for majority of companies to enter the capital market and enhance their corporate governance and their businesses by providing easier listing requirements.

Providing IPO and Trading services to the listed companies, IFB sets a strategy to diversify the range of instruments to respond to every risk appetite in the market and every need for fund raising for the entire lifecycle of the companies, by securitizing assets and liabilities.

Nowadays, Iran Fara Bourse offers a wide range of products and services to the market; Listing, IPOs and Trading in different sections of Equity market as well as providing a platform for Unlisted Securities Trading (UTP). Also, In Structured Financial Products Market (SFP), various types of Sukuk, CDs, Mortgage Rights and Funds are available.

Additionally, IFB owns a market for Privatization of Government-linked Companies (GLCs), which is a host for Mergers and Acquisitions as well as Intellectual Property listing. And recently few derivatives instrument were added to the list of securities at IFB which will be deeper in near future.

 

First and Second Markets

As the main markets for trading equity shares and their right offerings but enjoying more functions than the ones in the TSE, the first and second markets in the IFB have fewer conditions and requirements for listing.

Requirements

First Market

Second Market

Registration with SEO

 

 

Public Joint-stock Co.

 

 

No accumulated loss

 

-

Profitability of last fiscal year

-

Minimum Market Capitalization[1]

(million USD)

3.3

0.3

Minimum No. of Shareholders

200

-

Minimum Free-Float Shares (%)

10

5

Minimum Activity Record (Years)

2

1

Minimum Profitability Periods (Fiscal Years)

1

-

Equity to Asset Ratio (%)

15

-


Base Market

Public limited companies whose shares are not listed on any of the markets but, as all public companies have to, are registered with the SEO and are eligible to be traded on this market with no restrictions. Registered companies are categorized into the following groups:

1.      Public companies which do not tend to be listed but according to the laws and regulations have been registered;

2.      Companies which are registered but do not meet listing requirements, and

3.      Companies which are delisted from the TSE or IFB.

Convenient private placement, transparent ownership transfer, fair shares pricing, and tax relief for companies are among the advantages of this market.

 
Third Market
The IFB third market has been designed for specific types of transactions. Four services are provided mainly to institutional investors in this market as follows:

·         Private Placement: A private/public limited company including state-owned and private which is not listed on the capital market and also not registered at the SEO can request to sell a percentage of its share in this market.

·         Stock Repurchase: A company which is listed on the capital market may intend to buy back a specific number of its outstanding shares. Companies which chose the exit strategy or are delisted from the TSE or IFB would opt for this market.

·         Underwriting: The market acts as the primary destination for underwriting various securities.

·         Intellectual Property: The most recent market in Iran capital market to promote and support inventions, researches and new ideas and direct them to industrial investors and venture capitalists.

 

Modern Financial Instruments Market

All types of financial instruments; especially Islamic securities approved by the Securities and Exchange High Council, are eligible to be listed and traded on this market:

·         Certificate of Deposit (CD);

·         Sukuk (Murabaha, Ijara, Musharaka);

·         Housing Mortgage Right (HMR); and

·          ETFs