Mr. Rouhollah Hosseini Moghaddam, TSE’s Listed Companies Affairs director stated that according to the latest calculations at the end of September 2014, the average grade of free float in Tehran Stock Exchange reached 21.62% that is 0.1 percent less than the previous quarter.
In addition, since the beginning of the year, the average has dropped about 40 basis points. Therefore, from the total number of outstanding shares at TSE, more than 155 billion shares are currently floated, while the weighted average of free float of the Exchange is currently 19.38 percent, he mentioned.
The weighted average of free float in the main board reached 20.14 percent, while the arithmetic mean of the ratio of is 22.72 percent. This ratio for the secondary board of the first market is 22.87 percent and its arithmetic mean is 21.24 percent, Hosseini Moghaddam added.
The average of free float of TSE’s second market is 13.79% and the arithmetic mean of the ratio is 21.2 percent. If we consider the free float ratio as a one-dimensional measure of liquidity, as statistics show, the market liquidity of the first market is higher than the second market. Of course, based on international practices in the calculation of free float, the average free float is about 24% in Tehran Stock Exchange. According to the international approach, the free float is rounded up to 5 or 10, but we consider it without any rounding, TSE’s director concluded.