HSBC is no longer a bookrunner on Asiacell’s upcoming IPO, a move that leaves the Iraqi telco with a sole local distributor to run the share sale.
The exit follows Morgan Stanley’s departure in September, with only Baghdad-based broker Rabee…
HSBC is no longer a bookrunner on Asiacell’s upcoming IPO, a move that leaves the Iraqi telco with a sole local distributor to run the share sale.
The exit follows Morgan Stanley’s departure in September, with only Baghdad-based broker Rabee Securities remaining as “sole distributor and selling agent” on the float, according to a statement from Asiacell cited in Reuters today.
London-listed bank HSBC’s departure from the sale could make it difficult to pitch the IPO to international investors, according to an analyst cited in the report, leaving the telco reliant on local investor appetite which could prove challenging.
Asiacell is not the only telco looking to float on the Iraqi stock exchange next year. The Iraq unit of Kuwaiti telco group Zain and France Telecom affiliate Korek are also planning to float, although Asiacell is set to be the first to begin trading on 3 February.
Under the terms of their licences, Zain Iraq, Korek and Asiacell have been required to float 25% of their capital in order to triple the value of the Baghdad bourse, which stood at US$2bn in March 2009.
“[Asiacell’s float] may provide an indication of local market’s appetite and Zain can benefit from Asiacell’s experience,” a Bahrain-based analyst with knowledge of the company previously told TelecomFinance. “Zain may have to re-think their strategy of a single listing if there is insufficient appetite from local investors.”
