World  Business and Economic Analysis 

IPO,

  • Foreign investors can purchase shares of Iranian state-run companies



     Iran Privatization Organization (IPO) is transferring shares of 140 Iranian state-run companies to the privates sector, and foreign investors are welcomed to make purchase if they wish to, Deputy Head of IPO Davoud Khani said, the IRIB news agency reported on Wednesday.

    Expressing content that implementation of the nuclear deal between Iran and the P5+1 has set a proper bed for IPO and domestic investors to enhance their levels of ties with foreign counterparts, the official admitted that in a bid to improve economic infrastructure and reinforce domestic private sector, his organization has provided foreign applicants for buying Iranian shares with a list of the governmental companies with available stakes for being transferred.

     

    According to him, IPO has transferred over half of the total of 1,100 state-run companies to the private sector since the Iranian calendar year of 1380 (March 21, 2001-March 20, 2002), however, some of the companies have been eliminated from the transfer list due to some problems.

     

    Iranian state-run companies have transferred 109 billion rials (about $3.144 million) worth of their shares to the private sector since the beginning of current Iranian calendar year (March 20), the Fars news agency reported on Tuesday.

     

    Meanwhile, 29.662 trillion rials (about $855.799 million) worth of the shares of state-run companies were transferred to the private sector in the past calendar year of 1394 (which ended on March 19).

     

    The Iranian government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year.

    Under the present interpretation of the Article 44 of Iran's Constitution, hundreds of state-owned companies have been privatized.

  • Listrindo seals rare utilities IPO

    Independent power producer Cikarang Listrindo will become the first utilities company to list on the Indonesian Stock Exchange in eight years after setting a Rp3.6 trillion ($272 million) pricing for its initial public offering on Friday.

    The most recent new issue in the power and utilities sector was Indika Energy’s $298 million IPO, completed in June 2008.

    Bankers familiar with the situation told FinanceAsiathe order book for Cikarang Listrindo was well oversubscribed by predominantly foreign, long-only investors, including Matthews International Capital Management and another foreign anchor investor.

    Despite some evidence of price sensitivity during bookbuild, the company was able to push the final price off the bottom of the Rp1,430 to Rp1,930 indicative range.  Final pricing was settled at Rp1,500 per share, implying a pre-shoe market capitalisation of $1.82 billion that equates to 7.3 times EV/Ebitda for the 2017 financial year.

     

    On a price-to-earnings basis Cikarang Listrindo is valued at 12 times 2017 earnings. As the company plans to distribute at least 60% of its profit in dividends from 2017 onwards, the final price implies a 5% dividend yield next year.

    Final allocation was heavily skewed towards foreign and long-only investors, who took up close to 90% of the orders, according to a banker familiar with the situation. The remainder was placed to multi-strategy and hedge funds, the banker added.

    The two anchor investors ended up taking over half of the deal at the final price.

    Bankers said the strong foreign demand for Cikarang Listrindo shares showed that Indonesian equities remained one of the bright spots in the region. From a macroeconomic point of view, Indonesia remains also one of the fastest growing economies in Asia despite full-year GDP growth slowing to 4.8% last year.

    “Foreign participation increases liquidity in the Indonesian stock market and also helps new issuers tap the equity market for funding,” a Southeast Asia ECM banker told FinanceAsia.

    Cikarang Listrindo’s success revived hopes that dealmakers would press on with some of the IPOs that were put on hold last year due to market volatility, including those of property developer Summarecon Investment and insurance-to-real estate conglomerate Gunung Sewu.

    Cikarang Listrindo is set to list on June 14 as the country's first public independent power producer.

کتاب عملیات بانکی در عرصه بین الملل -سرفصل ها،ضمائم ،توصیه صاحب‏نظران ارزی و مدیران ارشد بانکی

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