IRNA reported that a part of Mobarakeh Steel Complex shares will be floated in the stock market.

As per report, 5% of equities of MSC or 790 million shares will be offered in one block at the bourse for price evaluation. The base price for each share has been set at IRR 3,900 and the buyer should pay 20% of total value in cash within a month.

The report added that 15% of shares of MSC will be offered in three blocks in the bourse on February 16th, February 17th and February 18th 2008.

It may be noted that buyers showed no interest in block sale of over 3.1 billion stocks of Mobarakeh Steel Complex on November 25th 2007 as no investor was able to pay over IRR 550 billion in cash to purchase such a large number of shares in block. As a result the shares are now offered gradually in the stock exchange in 4% to 5% blocks.

Shares of state companies are transferred to private sector in line with Article 44 of the Constitution which seeks large-scale privatization in key economic areas and downsizing the government.