TEHRAN, Iran, June 10
Trend:
Shares of exchange-traded fund (ETF) will be traded at Iran's stock exchange, said Deputy Economy Minister.
"The assignment of government shares will be completed this week and the stock exchange will trade them on June 21," said Abbas Memarnejad, Trend reports citing IRNA.
"The estimated value of government remaining shares in three banks and two insurance companies is $5.4 billion that is expected to be traded in form of exchange-traded fund with 20 to 30 percent discount," he said. "More than 3.5 million Iranians have participated in the first assignment while the process of assigning shares to them has not been completed yet."
Two more exchange-traded funds are also expected to trade government shares in Tehran, Tabriz, Bandar Abbas and Isfahan refineries alongside the shares in Mobarake Steel Company, National Iranian Copper Industries, Iran Khodro and SAIPA with 20 to 30 percent discount to the individuals that have identification code at the stock exchange.
This initiative is a part of government's privatization plan to reduce its role and provide finances for its needs.
The first exchange-traded fund was set up to assign government shares in Mellat, Tejarat and Saderat banks alongside Alborz Insurance and Amin Reinsurance companies. Iranian citizens with identification code were allowed to purchase shares up to 20 million rials (about$476), and the shares also are to be traded on June 21.
