HEAD OF IPO:
With the Cabinet approval, IDRO and IMIDRO will be listed by the end of Shahrivar
The director-general of the Iranian Privatization Organization (IPO) said: "The offering of IDRO and IMIDRO shares in the stock exchange needs the approval of the Cabinet and if this approval is obtained by the end of Shahrivar, the preparations for the offering will begin and hopefully it will be done in the first half of this (Iranian) year.
The PR department of IPO (via ISNA), Dr. Alireza Saleh stated that one of the problems of government divestitures in previous years was transferring the subsidiaries of a complex and said: “In some cases, this incident has caused losing the management circle and value chain in these companies. Accordingly, one of the things that should be considered in the transfer of state-owned companies is that the management chain in the transfer should not be destroyed.”
listing of IDRO and IMIDRO is pending the Cabinet approval
He continued: "Therefore, we are seeking the necessary and legal approval from the Cabinet to turn complexes such as IDRO and IMIDRO into public companies so that after obtaining the necessary approvals and legal permission and structural reform, these complexes can be listed and offer their shares on the stock exchange.
"If the legal permission and approvals for the offering of IDRO and IMIDRO shares are obtained from the Cabinet, then we will enter the stage of preparation of these complexes for offering in the capital market and we will try to do the evaluation and preparation works for the offering the shares of these groups in the stock exchange according to legal processes and be ready by the middle of this summer," he added.
Benefits of transferring IDRO and IMIDRO shares
Saleh further explained: “The benefit of transferring IDRO and IMIDRO shares on the stock exchange is that after this, these companies must publish their financial and economic information in the Codal system according to the law and be accountable to shareholders. So firstly, the issue of transparency in economic performance is addressed, and these companies will take a big step towards transparency.”
He continued: "Secondly, the issue of corporate governance is addressed because, after the listing, the process of appointing managers in these groups should be done per the high standards of the capital market. In fact, to select managers in subsidiaries, the professional qualification process must be per the rules of the capital market. This leads the work process in these economic complexes to comply with corporate governance and productivity rules, causing improved performance.
Power plants in line to enter the stock market
Saleh concluded: "After reaching an agreement with Ministry of Industry, IPO seeks to reach agreements with the Ministry of Energy for the transfer of power plants and electricity distribution companies based on the same model, but for this to happen, an agreement must be reached with the Ministry of Energy, paving the way for the divestiture of these companies.
According to the report, the government is determined to offer its shares in state-owned companies, and that has been repeatedly emphasized by officials since the beginning of the new Iranian year, including the president and the minister of economy and finance.
In this regard, under the budget law of the (Iranian) year 1999 and also under Article 44 of the constitution, the board of directors of the Securities and Exchange Organization in the meeting of April 11, approved the executive mechanism of transferring the remaining state shares of companies present in the capital market and this document was presented by the minister of economic affairs and finance to the vice president of Iran.