Kuwait-based Zain is in the process of setting up a holding company for its Iraqi unit and selling some shares in it ahead of an IPO, according to notice to the Kuwait Stock Exchange.
As per Iraqi regulations, a fully foreign-owned company is not…
Kuwait-based Zain is in the process of setting up a holding company for its Iraqi unit and selling some shares in it ahead of an IPO, according to notice to the Kuwait Stock Exchange.
As per Iraqi regulations, a fully foreign-owned company is not allowed to list on the country’s stock exchange. The company said this was the reason for spinning off Zain Iraq first and offer approximately 55.9 million shares at ID1 (US$0.0008) each before going ahead with the planned IPO.
The offer period starts today (4 June) and will last for 30 days.
Under its 2007 licence, Zain Iraq is required to list a 25% stake. Its competitors Korek and Asiacell, which received their licences the same year, are subject to similar conditions in an attempt to boost the value of the Baghdad bourse.
But all three Iraqi companies failed to meet an August 2011 deadline. As a result the Communications and Media Commission (CMC) decided to fine the carriers between US$8,500 and US$13,000 a day from September 2011 until the IPOs take place.
Asiacell was finally floated in early February this year, with its owner Ooredoo raising US$1.24bn for a 25% stake.
As for Zain Iraq, the company’s CFO Wael Ghanayem was quoted saying in late February that he was aiming for an IPO in the first half of the year.
An analyst familiar with the companies however told TelecomFinance at the time that he did not expect Zain Iraq’s IPO to launch by June due to delays in registering the company. “In fact if they manage a successful IPO in H2 2013 it will be an achievement,” he said at the time.
