Kish South Kaveh Steel Company has been active in the Persian Gulf region since 2007 and has since become one of the largest establishments in infrastructural industries in Iran. According to the Tehran Stock Exchange Admissions Director, 10 percent of South Kaveh Steel (SKS) Company’s shares will be offered prior to the Iranian Presidential Elections of 2017 by the IRMF (Islamic Revolution Mostazafan Foundation).
Mr. Esmail Dargahi, the Admissions Director of the Tehran Stock Exchange, in an interview amongst reporters, at HowToInvestInIran.com’s booth at Tehran’s International Exhibition of Exchange, Bank & Insurance on Tuesday, April 18th 2017, stated that the disputes over the company’s pricing was the main reason for the delay in issuing stocks in the Initial Public Offering. Mr. Dargahi continued on to explain that company’s trading tick is currently on Tehran Stock Exchange’s trading board and the latest information regarding the company’s status is available to the public for all investors through the Codal network.
Mr. Dargahi stated that the IRMF is SKS’s primary shareholder and that because South Kaveh Steel has always been a technologically-driven company in the Hormozgan region, it is expected to be among the few steel companies to have a bright future in the capital market.
The Director of Admissions went on to describe the main activities of SKS by stating that its main products are steel ingots and that South Kaveh Steel has been making these products using the Electric Arc Furnace method which dates back to over a decade ago.
Mr. Hadi Taheri, the board member of South Kaveh Steel and the representative of IRMF in the company also added that South Kaveh Steel is a project-oriented company and that the IRMF has invested 1 Trillion Tomans alongside a funding of 1.6 Trillion Tomans, totaling 2.6 Trillion Tomans of capital in this company which states that the intrinsic value of company`s share is high. Moreover, although most of the manufactured products are exported to foreign countries, he said he can’t provide an exact estimate of the company’s economic outlook for the future due to the unfavorable business climate and the repercussions from the sanctions.
However, with that said, during the 1935 fiscal year (Solar year), SKS had earnings per share of about 6 Tomans and for the FY 1936, it is estimated that with expected exports of 700,000 tons of steel ingots and 1.7 million tons of sponge iron and other iron products, an expected EPS of 18.4 Tomans.
Lastly, Mr. Taheri stated that Kish South Kaveh Steel company has exclusive access to iron ore mines in the Sangan region of Khorasan province and at the same time produces iron ore concentrate and 5 million tons of iron ore pellets through the East Steel Company using recently obtained permits.