Corruption in the initial public offering of new companies?

According to Tejarat News, recently, companies without expert prices are being offered in the market. It is not clear on what basis the OTC company offers these companies many times the real price in the market. The question is whether the OTC company is involved in this matter or new companies entering the market?

Meysam Shoushtari, a capital market expert, told Tejarat News: “There are new companies in the OTC market that are known as initial public offerings, but there are problems with them.” Among other things, the percentage and amount of share allocation to the initial public offering is very low. Something like 5 to 10 percent is allocated for this purpose, which is very little. Even at one time, due to the small percentage allocated, there was a lot of discussion about this issue.

Ambiguities of the new model of the initial release

He added: “Now a new model has been designed for the initial releases. In this way, some initial public offerings are made available only to mutual funds and the price is discovered by the fund. Also, the funds then offer the stock at the highest price in the market, which does not reach the shareholder for a while.

The capital market activist stated: The initial public offering should not be given to the fund at all. Because the funds have special customers and only they get a share. This is called corruption, but the most important problem with these stocks is that the expert price is not paid on them. The pricing rule is that the newcomer company should be valued by experts, then based on assets and financial statements to determine at least 5 periods of price floor and ceiling.

According to him, there are now several companies in the market without expert prices, and it is not clear on what basis the OTC company offers them many times the real price in the market; The question is whether the OTC company is involved in this matter or new companies entering the market?