By forming an innovative market, Farabourse seeks to facilitate the acceptance of startups and knowledge-based companies in the stock market. Meanwhile, according to the 7th plan, a technology exchange is supposed to be created.
According to Iran digital economy annotation, the Iran Stock Exchange Organization has created an over-the-counter innovative market where knowledge-based companies and start-ups can be listed. This market has an independent admission board.
This market has two growth and knowledge-based boards and wants to provide conditions for the entry of innovative companies and startups in the capital market. The idea of forming a specialized stock exchange for these companies has been proposed for about four years, but it was not realized until now.
Companies present in this market can use the advantages of the first and second over-the-counter markets, which include tax exemption, share approval, ease of financing through capital market tools, and the ability to trade shares.
Currently, 10 knowledge-based companies have applied for admission in this market, three of which have been accepted and 30 companies are candidates for admission. Also, the minimum registered capital of these companies must be 10 billion Tomans and they must have proper corporate governance.
Their financial statements must be in accordance with accounting standards and they must have received a knowledge-based license from the Presidential Practical and Technology Vice-President.
Another acceptance condition is the company’s clear vision for profitability. Also, the sum of shareholders’ equity must be at least 10 billion tomans and at most 500 billion tomans.
What will happen to the technology exchange?
The issue of creating a specialized stock exchange for knowledge-based companies active in the field of technology is not the first time that it has been raised. In the last case, the Seventh Development Plan, which was recently approved by the Parliament and is now being reviewed by the Guardian Council to become a law, also mentioned such a task.
In this program, the Ministry of Economy, in cooperation with the Ministry of Communications, is tasked with establishing a specialized stock exchange to provide the basis for the listing of companies active in the field of digital and knowledge-based economy.
Also, for these companies, special stock market indices and new financial instruments should be defined and their intangible assets should be recognized. On the other hand, the Ministries of Economy and Communications should develop a regulation according to which these companies can use their intangible assets in the validation, collateral and underwriting processes.
Due to the fact that the 7th plan has not yet become a law, it seems that the creation of an innovative market in the OTC has not been done by referring to this task of the 7th plan.
Is the stock exchange of start-ups booming?
In August 2022, when Tapsi had just entered the stock market, Meysam Fadaei, the then CEO of this organization, in an interview, announced the possibility of other startups appearing in the capital market by the end of that year and said: “Although I cannot make a definite promise, but we are now We have one or two startups that have no problem with the supply. They have just started. “Due to the year of knowledge base, we have opened a new line to help and advise startups for their presence on the stock exchange and off-exchange, so that they can go through this process quickly.”
This did not happen, and even after April of this year, when whispers were heard about the acceptance process of companies like Snap and Irancell in the stock exchange, no new news came.
Iranian start-ups and innovative companies have been announcing for a long time that they are interested in the initial offering in the stock market. This desire intensified since the explosive growth of the stock market in the first half of 2019, in such a way that at that time many startups such as Kafebazar, Sheypoor and Digikala were seriously talking about it.
Even in July of the same year, when the stock market bubble was on the verge of bursting, Farhad Dezhpasand, the Minister of Economy at the time, announced in a meeting attended by the managers of Digikala, Cafebazar, Tapsi, Filmo and Shipour that the first Iranian start-up will go public in the first week of August, and the fifth start-up will also It will enter the stock market in the last week of September.
Even though Dezhpasand’s promise during three months did not seem rational at all, but after three and a half years of that time, only one startup, Tapsi, has succeeded in offering its shares in the OTC. The conditions of the stock market progressed to such a degree that by moving away from the peak days, the desire of startups to enter also subsided and new challenges appeared, including the valuation of intangible assets. However, after Tepsi’s arrival, the path became a little clearer.
Now, with the start of the innovation market in the over-the-counter market, maybe this situation will be eased a little, although it is not yet clear what will happen to the technology exchange specified in the seventh plan.
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