Tabriz Petrochemical IPO on October 28: six-month profit almost tenfold, operating cash at 95% of profit (October 26, 2026)

Tabriz Petrochemical (TBRZ) is scheduled for its Tehran Stock Exchange IPO on October 28, 2026. The buyer's question is straightforward: after standalone six-month net profit climbed from 628.8 billion to 6,276.5 billion tomans, is the offer expensive? At the top of the announced price range, the price is 4.33 times trailing earnings to September 22, 2026, but that reading depends on the new profit margin lasting. We put the corrected Codal accounts beside the exchange's offer announcement.

Background

The company makes polymers in northwestern Iran and is the 631st company admitted to the Tehran exchange. Its CEO said at an October 24 presentation that it supplies more than 60% of domestic high-impact polystyrene and 40% of general-purpose polystyrene, and exports about 30% of output. Those are management assertions. On October 26, the exchange announced an order-book offer for October 28 of 249,100,000 shares, or 5% of the company; the capital-market news agency Sena separately quoted the exchange's equity-market operations director on the date and number.

According to Boursenews's report of the exchange notice, orders can be placed between 57,642 and 65,000 rials a share, around the 61,321-rial reference price (the range is about 6% either side). Each trading code may order at most 800 shares. A full order at the ceiling requires 52 million rials, or 5.2 million tomans, before fees, and about 4.6 million tomans at the floor. That is the cash needed to place an order, not the final allotment; the order window is to be announced on the day. The company's accounts and the exchange's instrument card both give 4.982 billion shares: at the floor this implies a 28,717-billion-toman equity value, at the reference 30,550 billion and at the ceiling 32,383 billion. The finance chief described an estimated offering valuation near 30 trillion tomans. These are price-times-shares scenarios, not discovered trading prices.

The filed numbers

The corrected, unaudited standalone statement for the six months ended September 22, 2026, Codal tracing number 1618350, reports operating revenue of 283,031,250 million rials and net profit of 62,765,050 million rials. The restated comparable half-year ended September 22, 2025 shows 113,872,543 million and 6,287,546 million rials respectively. Dividing each million-rial figure by 10,000 produces billions of tomans: revenue of 28,303.1 billion against 11,387.3 billion, and profit of 6,276.5 billion against 628.8 billion, growth of 149% and 898%, so profit rose almost tenfold. Gross profit rose from 1,712.2 billion to 8,679.0 billion tomans and operating profit from 917.2 billion to 7,314.7 billion. Six-month profit was 3.4 times the full prior-year standalone profit of 1,833.0 billion tomans, and half-year revenue also exceeded that year's 27,936.1 billion.

Gross margin, gross profit divided by revenue, increased from 15.0% to 30.7% (versus 16.8% for the full prior year); net margin increased from 5.5% to 22.2%. Standalone earnings per share were about 12,598 rials. The consolidated group earned 6,394.4 billion tomans, or 12,835 rials a share. All calculations here keep the standalone basis.

To reconstruct trailing earnings to September 22, 2026, add the prior full year's standalone profit of 1,833.0 billion tomans to the recent half-year's 6,276.5 billion and subtract the comparable earlier half-year's 628.8 billion: 7,480.8 billion tomans, or 15,015 rials per share. The exchange's instrument card showed estimated EPS of 15,016 rials when read on October 26. Dividing the offering prices by that earnings figure yields a P/E of 3.84 at the floor, 4.08 at the reference and 4.33 at the ceiling. Using only the prior full-year EPS of 3,679 rials, the ceiling is 17.7 times earnings; the gap between the two shows how much the lower multiple depends on the recent profit jump. With standalone equity of 11,049.8 billion tomans at September 22, price to book is 2.60 at the floor and 2.93 at the ceiling.

For context, Sahmino's nightly screen read on October 26 of chemical-industry listings with a positive trailing P/E found 60 names. Only two had a multiple below 4.33: PESP at 2.11 and IPTR at 3.74. Another 48 stood above 6.3. The exchange's sector P/E on the TBRZ instrument card was 9.49. TBRZ has yet to trade and is not in that screen; at the offer ceiling it would sit behind those two. The group is not a strict peer set, so the comparison is a reference, not a verdict on relative quality.

Drivers

Against the previous six-month period, revenue increased 149% while cost of sales increased 103%. The difference widened the reported gross margin. At the October 24 presentation, the finance chief attributed part of the revenue gain to exchange rates and part of the lower cost to buying feedstock before FX and world-price changes. That is management's explanation, not a cause established by the unaudited accounts. He also said six-month operating profit of roughly 7,300 billion tomans was approaching the 8,595-billion-toman full-year operating profit in the valuation; Codal gives 7,314.7 billion, about 85% of that figure. A second-half forecast mentioned at the same meeting does not reconcile with the valuation inputs and is not used here.

Standalone retained earnings at September 22 were 10,501.8 billion tomans against capital of 498.2 billion, 21 times. Management said a capital increase from retained earnings is planned after the IPO with major shareholders' consent; shareholders have not approved one at a meeting. If approved on that basis, it brings no fresh cash into the company: the share count rises and the per-share price adjusts.

Outlook and the countercase

Weak comparison base. The finance chief said a prolonged overhaul in the 2025-26 financial year halted production and sales for about 56 days. The earlier half-year profit of 628.8 billion tomans was therefore a low base. The nine-month filing will show whether a gross margin near 30.7% persists.

Cash conversion. Standalone net operating cash flow for the six months was 5,968.6 billion tomans, or 95.1% of net profit on the same basis and period (5,968.6 divided by 6,276.5). But spending on property, plant and equipment was 5,591.2 billion tomans, leaving only about 377.4 billion afterwards. Trade receivables at September 22 were 6,700.4 billion tomans, 70% above the March 20 balance.

Debt. Short-term loans at September 22 were 10,338.9 billion tomans, up 32% from 7,806.3 billion at March 20. Cash of 1,065.0 billion and short-term investments of 1,455.0 billion leave about 7,818.8 billion tomans of net debt (our subtraction). Six-month finance costs were 242.1 billion tomans, covered about 30 times by operating profit. Management said its high-density polyethylene project was 80% complete; commissioning and sales are not yet results.

A prior call, settled. In Sahmino's Fasap IPO report, the test was that closes would stay above the 3,610-rial offering floor for the first ten sessions. Recorded closes from October 12 through October 25 ran from 4,070 to 5,260 rials and the call held. One offering is not a guarantee for another. Do not confuse this piece's standalone basis with the consolidated profit report on Tabriz Petrochemical.

What does an order allot?

The offer is 249.1 million shares, so 311,375 full 800-share orders would absorb it. If 1.5 million trading codes took part (Tabriz's predecessor Taban drew 2.009 million participants on August 31, per Boursenews) and allotment were equal, each code would get about 166 shares, costing about 1.1 million tomans at the ceiling; with two million codes, about 125 shares, around 810,000 tomans. These are our hypothetical participation and equal-allotment scenarios, neither a result nor a demand forecast.

Conclusion

At the offering ceiling, TBRZ trades at 4.33 times trailing standalone earnings of 7,480.8 billion tomans, and half-year operating cash was about 95% of profit. The multiple looks inexpensive on that basis, but the unusually wide margin and the short-term debt must be tested once it lists. Sahmino's reading of the evidence here (the desk has no call on a stock that has not yet traded): TBRZ will remain above the 57,642-rial offer floor on closing prices in its first ten trading sessions; condition: no persistent sell queue develops in the stock; horizon: the first ten trading sessions; invalidation: a closing price below 57,642 rials.

What to follow

• The discovered price and participant count after the October 28 offering.
• Each of the first ten closes against the 57,642-rial floor, and any persistent sell queue.
• The next monthly sales filing and nine-month accounts, particularly margins, receivables and operating cash.

Run the ready-made "cheaper than its sector" question in Sahmino Research, choose the chemicals industry, and compare TBRZ with profitable names once it begins trading. The same workflow is described in the Sahmino screening report.