Mobile operator Asiacell is concerned that low liquidity on the Iraq Stock Exchange (ISX) will stop it raising a sufficient amount of cash in an IPO, according to media reports.
Reuters reported today that Asiacell’s licence required it to perform an IPO…
Mobile operator Asiacell is concerned that low liquidity on the Iraq Stock Exchange (ISX) will stop it raising a sufficient amount of cash in an IPO, according to media reports.
Reuters reported today that Asiacell’s licence required it to perform an IPO of 25% of its shares before the end of August.
The ISX began trading in June 2004. But Reuters reported that daily turnover on the exchange in May was just US$1.6m.
An Asiacell spokesman has reportedly said that the company had expressed its concerns over the capacity of the ISX to absorb IPOs of one or more telcos at the level required by the licence.
The Qatari incumbent Qatar Telecom holds a 30% stake in Asiacell.
In 2007, Asiacell and two other mobile operators – Korek Telecom and Zain Iraq – each paid US$1.25bn in 2007 for 15-year licences. The government is aiming to make a fourth mobile licence available later this year.
Asiacell did not reply to questions before the press deadline.
