US curbs block Iran firm’s IPO

london/ankara — Iran’s top cargo shipping company has held meetings in London to discuss a possible listing on the London Stock Exchange, but has so far been thwarted by US sanctions that still scare banks off Iranian business, four Iranian and two Western sources said.

Islamic Republic of Iran Shipping Lines (IRISL) was removed from international sanctions blacklists last year and after years of isolation aims to raise funds to modernise its fleet. It has already placed an order for new ships estimated to be worth $626 million.

A flotation on the LSE would make it the first Iranian company

In the current climate, I believe it is wholly unrealistic for IRISL to expect to pull [it] off Nigel Kushner, sanctions lawyer

to list on Britain’s main exchange since the revolution in 1979.

But the difficulty in achieving such a landmark shows how far Tehran still remains from its goal of integrating fully with the global economic mainstream. Most international sanctions on Iran were lifted last year as a result of the nuclear deal. But the United States still has separate sanctions in place over Iran’s missile programme and the administration of new President Donald Trump has signalled it would take a tough line. The four Iranian officials and two Western financial sources told Reuters the Iranian company had expressed interest in an LSE listing.

Two of the Iranian sources, both senior officials in Tehran, said meetings had already been held with the LSE in London about a possible float for IRISL.

In an e-mail to Reuters, a source at IRISL denied any measures had been taken for a possible listing on the London Stock Exchange. The LSE declined to comment. All six Western and Iranian sources spoke on condition of anonymity to discuss an initiative that has not officially been made public.

“In the current climate, I believe it is wholly unrealistic for IRISL to expect to pull off a listing in London,” said Nigel Kushner, a Londonbased sanctions lawyer. —