Iranian finance and economic affairs minister announced that offering of shares through the country’s second exchange-traded fund (ETF) will be started on the first Wednesday of the next Iranian calendar month (August 26).

Farhad Dejpasand said that Finance and Economic Affairs Ministry and Oil Ministry have made the necessary coordination for the second ETF’s offering on the mentioned date, IRNA reported.

On May 2, the Tehran Stock Exchange (TSE), which is the main stock exchange of Iran, listed the first exchange-traded fund (ETF) from a series of three ETFs, through them shares of some state-owned organizations and companies are planned to be offered.

An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.

As described by Investopedia, ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types. An exchange-traded fund is a marketable security, meaning it has an associated price that allows it to be easily bought and sold.

The shares to be offered via the above mentioned Iranian ETFs belong to those governmental bodies defined in Iran’s privatization program, a comprehensive plan seriously followed up by the government to downsize and reduce its role in the economy.

The three ETFs are planned to offer 550 trillion rials (about $13 billion) worth of the governmental stakes.

The first ETF, established by the Ministry of Finance and Economic Affairs, comprises government shares in three banks, including Bank Mellat, Tejarat Bank, and Bank Saderat, as well as the shares of two insurance companies, i.e. Iranian Reinsurance Company and Alborz Company.

The government has a 17-percent stake in Bank Mellat, a 17-percent stake in Tejarat Bank, and an 18-percent stake in Bank Saderat.

In mid-June, the finance and economic affairs minister announced that the value of shares that are offered by the first exchange-traded fund had doubled.

Referring to the offering of the shares via the first ETF, Farhad Dejpasand said, “The offering was our first experience in this field. About 3.6 million persons purchased the units of shares offered by the first fund.”