Iran's government stakes in four refineries will be put on offer through the second state-controlled exchange-traded fund in the near future, head of the Iranian Privatization Organization said.
Alireza Saleh said the assets would include the government’s remaining stakes in Tehran Oil Refining Company, Esfahan Oil Refining Company, Tabriz Oil Refining Company and Bandar Abbas Oil Refining Company. The government own 20% of shares in each refinery.
Th new ETF, dubbed as “Oil Refinery Industries”, will make debut before the current calendar month is out on August 21, the IPO website reported.
As per rules, ETF units are on offer for two weeks and people can buy using their national ID numbers as trading codes.
Last week the IPO said it would offer shares in Tabriz and Bandar Abbas refineries in two blocks. However, the two will be included in the new ETF as no buyer was found for blocks of shares.
A notice published on the IPO website for Tabriz Refinery shares said the whole block of share is worth 48.46 trillion rials ($220 million), asking prospective buyers to pay half the price in cash and the remaining in 18-month installments.
Selling shares via ETFs is part of the government’s efforts to raise funds as per provisions set in the fiscal budget (March 2020-21). In April the government said it would cede shares in three phases through three ETFs.
The first phase commenced on May 3 with 17% of government stakes in Tejarat Bank, 17% in Bank Mellat, 18.32% in Bank Saderat Iran, 17.34% in Alborz Insurance Company and 11.44% in Amin Reinsurance Company on offer via an ETF dubbed the ‘First Financial Intermediary’.
Shares in refineries will be offered as part of the second phase in another ETF.
In the third and final phase shares in giant auto and metal companies will be offered. The third fund is expected to hold 12.05% of government stakes in the National Iranian Copper Industry Company, 17.2% in Mobarakeh Steel Company, 14.04% in Iran Khodro (IKCO) and 23% in SAIPA.