PGPIC chief: Iran eyes flotation for two more petrochemical companies

Iran is planning to float two more petrochemical companies in the stock market as it seeks to finance expansion projects in the oil and gas industry amid US unilateral sanctions that have affected government coffers.

IRNA cited a senior official in Iran’s petrochemical industry as saying on Monday that listings for the two companies would follow a successful stock market debut for two petrochemical firms last month, according to Press TV.

Jafar Rabeie, who serves as the CEO of Persian Gulf Petrochemical Industries Co. (PGPIC), said that debuts for at least one of the companies, which he would not name, would take place before March 2020.

“We hope one of them could be realized until the end of the year,” said Rabeie, whose PGPIC is viewed as the largest petrochemical holding in the Middle East region.

He added, however, that there was a chance that both companies could be floated until March if the bourse (stock market) officials relaxed rules surrounding flotation.

The announcement comes more than a month after investors flocked to Tehran’s stock exchange market to buy shares offered for two major petrochemical companies.

Officials said some 9.6 trillion rials ($80 million) were pocketed in the selloff in early July when more than 750,000 shares were traded for Nouri and Pars petrochemical companies.

Flotation of petrochemical firms comes as Iran is pursuing a downstream expansion strategy in its oil and gas sector amid decreased crude sales that have come as a result of US sanctions.

Listings are also viewed as a response to an exceptional investor demand in the stock market where people believe the shares could pay off much better than gold coins and hard currency in the current economic situation in Iran.

source: Iran Daily