Colored Metal Melting Company (Fanqareh) will be introduced to investors on Tuesday as the nineteenth new company of the year with the initial public offering of 9% of its shares in the over-the-counter market. This offering will be conducted through a combined method, and 450 million shares equivalent to 9% of the company's shares will be offered.
Details of the Initial Public Offering
According to available information, these 450 million shares will be offered to investors in two phases. In the first phase, 150 million shares equivalent to 3% of the company's shares will be offered at a price of 11,827 rials in the second market of the over-the-counter transactions. In this phase, the maximum allocation for each investor is set at 1,875,000 shares.
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The second phase will include the offering of 300 million shares equivalent to another 6% of the shares of Colored Metal Melting Company, which will also take place on the same day with a maximum allocation of 600 shares for both individual and institutional shareholders. This phase will be conducted through a fixed price discovery method, allowing investors to purchase shares at a specified price.
Conditions for Buying and Selling Options
Share buyers in the second phase of the initial public offering will have the option to sell these shares based on the allocated number on that day. The exercise price of this option will be 30% higher than the discovered price on the day of the initial public offering and will mature on September 21, 2027. These conditions assure investors that if they wish, they can sell their shares under better conditions.
This year has seen the initial public offering of 18 companies, including Shifteh Arayesh Shargh, Kulan Sel, Rahyab Payam Gostaran, and more, and now Colored Metal Melting Company is added as the nineteenth new share to this list. This initial public offering provides a new opportunity for investors to enter the stock market and, given the new economic conditions, help grow their investments.
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