Petrochemical Company Sells $88m of Securities on IRENEX
Bandar Imam Petrochemical Company started selling 4 trillion rials ($88 million) worth of standard parallel salaf contracts for liquefied petroleum gas on Iran Energy Exchange on Monday.
According to BIPC’s Managing Director Ali Hosseini, the 1.508 million contracts’ initial public offering is to finance the petrochemical company’s future operations and projects.
Each contract is priced at about 2.65 million rials ($58.26), according to BIPM’s announcement published at IRENEX.
Standard parallel salaf is an Islamic contract similar to futures, with the difference that the contract’s total price must be paid in advance.
The offering started at 11:00 a.m. at IRENEX and is set to continue for five consecutive trading days. The contracts will be available for secondary trading after at least 10 days after the IPO.
Established in 2012, Iran Energy Exchange is a commodity exchange trading physical energy carriers (including oil, gas, electricity, etc.) and commodity-based securities in its physical, derivatives and subsidiary markets.
IRENEX is mostly involved in trading electrical energy, with standard parallel salaf for electricity being its main traded product. The market, which works from 9:30 a.m. to 12:00 p.m. local time, sporadically sees smaller-scale trading of petroleum-based energy carriers.
According to Tsetmc.com statistics, the contracts with the ticker “LP011” were sold out on the very first day of trading. Traders purchased 1.508 million of the securities in 161 transactions, boosting the price 0.45% higher than its open to 2.66 million rials ($58.52) by trade’s close. Demand far exceeded the IPO’s supply.
BIPC is located in the southern city of Bandar Emam Khomeini in Mahshahr County of Khuzestan Province. Established in 1973, it produces chemicals, aromatics, polymers and LPG. It was acquired by one of the largest holding companies in Iran’s capital market, the Persian Gulf Petrochemical Industries Company, back in 2010.
source: Financial Tribune
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