Ehya IPO Goes Ahead Monday, 19 Mordad on Iran Fara Bourse; 2,582 Rial Valuation for a Sponge Iron Producer With Over 17 Trillion Toman in Assets

A 4 percent stake in Ehya Steel Foolad Baft, an Iranian sponge iron (direct reduced iron) producer, goes public on Monday, 10 August 2026 (19 Mordad 1405) on the second market of Iran Fara Bourse, via a combined offering method. The discovered price is set at 2,582 rials per share, putting the company's total value at roughly 16.6 trillion toman (about 660 million US dollars at informal market rates, unconfirmed by Sahmino). The offering runs in two stages on the same day: an auction tranche for qualified investors, then a fixed price tranche for the general public.

Background

Ehya was founded in 1394 (2015), and its first production phase came online in Farvardin 1398 (March/April 2019), at the height of international sanctions. The company now runs two active sponge iron production units; its chief executive said at a press briefing in early Mordad 1405 (late July 2026) that its product currently commands the highest price among comparable listings on the Iran Mercantile Exchange (Bourse Kala). The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the Bank of Industry and Mine each hold 20 percent of Ehya's shares. Last year the company ranked third among domestic producers by sponge iron export volume, shipping 67,000 tonnes.

Ehya's listing comes as Iran Fara Bourse works through a run of IPOs in Iranian year 1405, including Taban Farda Petrochemical Group's 5 percent offering, whose valuation drew far more debate. By comparison, Ehya's offering is small: the total value of the shares on sale, at the discovered price, is about 662.6 billion toman, against a one day turnover on Iran Fara Bourse of roughly 33 trillion toman on Sunday, 9 August 2026 (18 Mordad 1405), per Sahmino's own trading data.

The offering by the numbers

• Ticker: Ehya; offering date: Monday, 10 August 2026 (19 Mordad 1405), per Bourse News (6 and 7 August 2026)
• Discovered price per share: 2,582 rials, per Bourse News (6 August 2026)
• Total shares offered: 2,566,200,000, equal to 4 percent of the company
• Stage one (auction, qualified investors only): about 853,261,500 shares (1.33 percent), capped at 10,666,000 shares per trading code
• Stage two (fixed price, general shareholders): 1,712,938,500 shares (2.67 percent), capped at 3,500 shares per trading code
• Total offering value (Sahmino's calculation from the figures above): about 662.6 billion toman
• Total company valuation on the same basis (Sahmino's calculation): about 16.6 trillion toman
• Total assets, fiscal year 1404: 14.3 trillion toman; in the unaudited six month report for 1405: over 17 trillion toman, per Eghtesad Online's report on the early Mordad 1405 press briefing
• Net profit margin, fiscal year 1404: 8 percent, per Eghtesad Online
• Offering advisers: Loghman Brokerage and Bank of Industry and Mine Brokerage; underwriter: Damavand Capital, per Bourse News (7 August 2026)

Drivers

Ehya's 2,582 rial valuation was reached by equally weighting four standard valuation methods over a forecast period spanning Iranian years 1405 to 1409 (2026 to 2030). The valuer's representative told the press briefing the figure gives each of the four methods equal weight.

The company's core driver is the export market for sponge iron, which its chief executive describes as currently the highest priced product among its peers on the commodity exchange. But an energy imbalance over the past two years has cost the company an estimated 30 to 40 percent of production capacity. To manage it, Ehya has this year bought power on the free electricity exchange and installed efficiency heaters for the winter gas shortage; it is also building a 40 megawatt solar plant, now 7 percent complete, expected to finish by the end of 1405 (March 2027) and come online from the start of 1406.

Outlook

Ehya's combined offering structure carries a built in hedge for stage two buyers: every trading code is covered by a tabaee (embedded) put option, exercisable at 30 percent above the 2,582 rial discovered price, maturing on 19 Mordad 1406 (10 August 2027). In practice, if the market price sits below the strike at maturity, the holder can sell the shares back at that strike price. The option caps near term downside risk, but it is not a guarantee of profit.

Separately, the company's 16.6 trillion toman total valuation sits below the more than 17 trillion toman in total assets reported for the first half of 1405; the gap could reflect conservative discounting of the forecast, the company's debt load, or the energy imbalance risk described above. Sahmino does not have data on Ehya's liabilities, and total assets should not be read directly as a per share book value.

Bottom line

Ehya lists on Iran Fara Bourse on Monday, 10 August, at a discovered price of 2,582 rials and a total valuation near 16.6 trillion toman; measured against the exchange's daily turnover, the offering is small, but it carries an export driven business and a part state-owned shareholder base (IMIDRO and the Bank of Industry and Mine together hold 40 percent). The key detail for stage two buyers is the embedded put option at 30 percent above the discovered price, valid until August 2027, which sets a risk floor rather than a return ceiling.

What to watch

The outcome of Monday's stage one auction, including whether the final discovered price lands above or below the 2,582 rial base; how much demand registers in the stage two fixed price tranche; and how the stock trades in its first sessions, a period that has typically seen high volatility for recent Iran Fara Bourse listings.