Fasap IPO (Mammut Structures & Panel) Tomorrow at a 4,070 Rial Cap, 21% Below the Valuer's Estimate; Six-Month Profit Up 151% (Sunday, October 11, 2026)

The Fasap IPO (Mammut Structures & Panel) takes place tomorrow, Monday, October 12, 2026, on the second market of the Tehran Stock Exchange, and the central question is whether its price sits below the estimated intrinsic value. For 368.5 million shares (5 percent of the company) the exchange set a band of 3,610 to 4,070 rials, and the official valuer put each share at 5,180 rials. This report sets those numbers beside the Codal financial statements to show where they are strong and where caution is due.

Background

Mammut Structures & Panel has operated since 2005, belongs to the Mammut industrial group, and 80 percent of its shares are held by Farin Chika. It runs five businesses: sandwich panels, containers and prefabricated buildings, steel structures, industrial sheds and Space Cabin. At the investor briefing on October 4, 2026 the chief executive said sandwich panels produced more than 60 percent of revenue in the first half of the 2026/27 fiscal year and that the company held about 27 percent of the domestic market in the prior year. Fasap is the 640th company admitted to the Tehran Stock Exchange, in the "fabricated structural metal products" class.

Offer terms, from the Tehran Stock Exchange announcement (as reported by Boursenews, October 8, 2026):

Early coverage of the investor briefing wrote of a 15 percent offering, but the official exchange announcement and later reports record 5 percent, and this report rests on that figure.

The numbers in the statements

The interim statement for the six months to September 22, 2026 (unaudited, amended, Codal tracing number 1609145) gives this picture. The prior-year column is audited and restated. Codal's figures in million rials have been converted to billion tomans.

Gross margin rose from 16.4 to 19.3 percent and operating margin from 12.1 to 15.1 percent. Net margin stayed near 10 percent (10.1 against 10.5 percent) because finance costs multiplied.

Earnings per share for the same period rose only 2 percent (731 against 717 rials) because capital grew from 3.37 to 7.37 trillion rials. The extraordinary assembly of May 7, 2026 approved the 4 trillion rial increase: 2,500 billion rials from retained earnings (non-dilutive) and 1,500 billion rials from receivables and cash contribution (dilutive). For an IPO buyer the base is today's 7.37 billion shares: six-month profit per share comes to 692 rials.

Market capitalisation at the three points of the band (price times 7.37 billion shares) runs from 2,660.6 billion tomans at the floor to 2,830.1 at the base price and 2,999.6 at the cap. The valuer, Damavand Capital Market Co., estimated total equity at 3,810 billion tomans and each share at 518 tomans, or 5,180 rials. That puts the cap 21.4 percent below the estimate, the base price 25.9 percent below and the floor 30.3 percent below.

We computed the trailing twelve-month price to earnings ratio ourselves from four Codal values: twelve-month profit to September 22, 2026 equals fiscal 2025/26 profit (494.9 billion tomans) plus H1 2026/27 (509.7) less H1 2025/26 (203.3), or 801.2 billion tomans. On that basis the ratio is 3.32 at the floor, 3.53 at the base and 3.74 at the cap. Price to book at the cap is 1.89 (equity of 1,590.5 billion tomans). For comparison, in the Sahmino screener (nightly reading of October 11, 2026), among the 10 fabricated metal products names with a positive trailing price to earnings ratio, the cheapest is Farak at 5.53, followed by Fama at 8.12, Fabira at 8.70 and Fajam at 8.95; the median of the ten is 11.2. This group is not an exact peer set, only a yardstick.

Drivers

The growth mechanism is price. At the investor briefing the chief financial officer said the average sandwich panel selling price in the first half rose about 172 percent to more than 3.2 million tomans per square metre, while the average purchase price of sheet and iron, the largest input, rose 60 percent from 57,000 to 92,500 tomans. He said pricing in the industry is not state-set. So the margin lasts only while the selling price stays ahead of steel cost; these remarks are management statements and do not appear in the audited accounts.

Containers carry the highest gross margin in the mix (32 percent, per the spring statements as cited by the chief financial officer), and management targets 2,000 units sold in 2026/27 against 354 in the prior year, with a stated nominal capacity of 5,000. That is a target, not a result.

Dividends are a possible driver too. The board proposed distributing 35 percent of distributable profit for 2026/27 (Codal disclosure, October 3, 2026), with the assembly deciding; the assembly of July 14, 2026 approved no cash dividend for 2025/26. Purely to size it: if the first-half profit (509.7 billion tomans) were the year's base, 35 percent of it is about 242 rials per share, near 6 percent of the base price. This is a hypothetical scenario, not a forecast.

Outlook and risks

Sales budget. The 2026/27 sales target is 14,700 billion tomans, and 5,030 billion, 34.2 percent of it, was booked in six months. To reach budget, second-half sales must be 9,670 billion tomans, 1.92 times the first half. In its October 4, 2026 disclosure the company wrote that sales are seasonal and a large part of the budget sits in firm contracts; later monthly reports will test that claim.

Cash quality. Operating cash flow in 2025/26 was only 11 billion tomans against profit of 494.9 billion; the company attributes this to raw-material stockpiling. In the first six months of 2026/27 operating cash flow reached 864.9 billion and exceeded profit, but receivables are up 141 percent since year-end (1,514.1 billion tomans) and customer advances up 89 percent (1,553.9 billion).

Debt. Finance costs rose 7.3 times. Interest-bearing debt is 958.7 billion tomans (long-term 715.0, short-term 243.7) against 723.1 billion in cash; net debt is 235.6 billion and operating profit covers finance costs 5.0 times. In the same period the company issued 756.0 billion tomans of participation bonds and repaid 1,165.0 billion of facilities.

Valuer assumptions. The 5,180 rial estimate is the average of four methods, struck in August 2026 with a 39 percent risk-free rate, a 15.7 percent market risk premium, a beta of 1.4 and 25 percent long-term growth. Change those assumptions and the number changes; the valuer's estimate is not a future price.

After the offering. The latest example is Zeshk: its first recorded price in Sahmino's series was 9,954 rials (October 5, 2026) and the latest 11,180 rials (October 11, 2026), up 12.3 percent in five sessions with a persistent buy queue; see the Zeshk report. One example does not make a rule, and Fakour Sanat, which published its valuation before its offering, is in different circumstances.

How to order, and with how much money

An order needs an active trading code and cash in the brokerage account. The 1,000 share cap at the top price (4,070 rials) is 407,000 tomans before fees, but that is the money needed for a full order, not the final cost. Because the 368.5 million shares are divided among all participants, if 1.5 million codes take part each gets about 246 shares (near 100,000 tomans at the cap price), and if 1.8 million take part about 205 shares (near 83,000 tomans); these two scenarios are our arithmetic, not an offering result. The issuer's page lists 9:00 on Monday morning, but the exact order window is set by the exchange supervisor's message on offer day.

Bottom line

In tomorrow's band Fasap sits between 21.4 and 30.3 percent below the valuer's estimate, and on twelve-month profit of 801.2 billion tomans its price to earnings ratio even at the cap (3.74) is below the cheapest name in the ten-stock yardstick (5.53). The gap is conditional, because 34 percent of the sales budget has been booked, finance costs have multiplied and the valuer's assumptions are optimistic. Sahmino's reading from the evidence in this report (the Sahmino desk has logged no call on Fasap, since the symbol does not trade yet): Fasap stays above the offer band floor, 3,610 rials, over its first ten sessions; condition: as long as no sell queue forms in the first ten sessions; horizon: the first ten trading sessions; invalidation: a closing price below 3,610 rials. The 5,180 rials is the valuer's reference, not a Sahmino target.

What to follow

• The price discovered within the 3,610 to 4,070 rial band and the participant count, announced after the offering ends.
• Buy or sell queues and each session's close in the first ten sessions, against 3,610 rials.
• Monthly activity reports on Codal, to see whether sales approach the 1.92 times second-half path.
• Operating cash flow and finance costs in the nine-month 2026/27 statements.

Build the same comparison yourself in the Sahmino screener: choose the fabricated metal products industry, add the condition trailing price to earnings above zero, sort ascending, and compare Fasap with these names once it lists.