Iran Air to launch IPO on Tehran bourse to fund fleet
Iran Air Chairman, Farhad Parvaresh, stated the carrier plans to launch an initial public offering (IPO) with a listing on the Tehran Stock Exchange, at between 60-100% of stock (Bloomberg, 29-Jul-2010). Iran Air subsidiary, Homa Hotels, is already listed, with Iran Air Tour expected to launch an IPO by the end of the Iranian calendar year, 20-Mar-2011. No timeframe was disclosed. The airline plans to use the funds to finance the acquisition of up to 100 new aircraft and spare parts from Boeing and Airbus. Iran Air operates a fleet of 53 Boeing, Airbus and Fokker aircraft, with an average aircraft age of 21 years.
Iran Air: “Our company will be going into the Tehran Stock Exchange. We are creating the conditions for this. Whether that will be 100%, 70%, 60%, we are working on this. We have had restrictions to get planes but have made efforts and succeeded. We have restrictions to get parts, but have managed. It’s still difficult, but we are making efforts. We are always thinking about buying new planes. Perhaps we need some 100 aircraft. Boeing and Airbus are making a huge mistake not to use this market … Whenever we have an opportunity. It’s not very easy. Certain conditions need to be met, and when they are, we will buy,” Farhad Parvaresh, Chairman. Source: Bloomberg, 29-Jul-2010.