Islamic Republic of Iran Shipping Lines (IRISL) is eyeing an initial public offering (IPO) in London but US sanctions still in place could prove to be a serious obstacle.
Iran’s top shipping company has held meetings in the English capital to discuss a possible listing on the London Stock Exchange (LSE), Reuters reported.
This move would make IRISL the first Iranian company to list on England’s main bourse since the Islamic revolution in 1979.
As TradeWinds was first to report, IRISL placed a $650m order for six tankers and four boxships at Hyundai Heavy Industries (HHI).
The Iranian company has intensified its efforts to grow and regain its shipping market share following the lifting of international sanctions last year.
US sanctions an obstacle
But as independent US sanctions are still in place, any attempt to list on LSE could face severe difficulties.
Nigel Kushner, a leading London-based sanctions lawyer, told Reuters: “In the current climate, I believe it is wholly unrealistic for IRISL to expect to pull off a listing in London.
“In circumstances where no UK clearing bank is willing to become involved and when Iranian banks that may legitimately trade in London are still not able to clear their transactions in London, how on earth is a listing going to happen?”
Reuters also reported that Milan’s stock exchange could be an alternative for IRISL, in case the LSE negotiations fail to bear fruit.
