Tehran Stock Exchange: Iranian Government Sells Its Own Shares on Saipa

Saturday, 24 July 2010

On 21 July 2010, in compliance with the privatization scheme, a block equivalent to 18 percent, 1,872 million stocks of the state – owned company, Saipa (the second largest auto maker in Iran) were offered by the Iran Privatization Organization on Tehran Stock Exchange and were sold at the price of 8,460 Rial ($0.80) per share with the total value of 15,837 Billion Rial ($1.5 billion). The buyer must pay 30% of the amount cash on delivery and 70% deferred in 5 years. Saipa was established in 1966, assembled the two-cylinder Citroën mini passenger car, the Dyane, and manufactured licensed versions of the original Renault 5, Renault 21 and Kia Pride. Production of the Saipa Pride continued until 2005 when then they introduced an updated model based on the Pride called the Saipa 141 while continuing to sell their version of the Pride under the names Saba and Nasim.