Iraqi telco Asiacell’s IPO has now closed to investors, having raised US$1.24bn for 25% of its share capital.
The offering was fully subscribed, with shares sold at IQD22 (US$0.018) per share.
Trading on the Iraq Stock Exchange commenced today, with…
Iraqi telco Asiacell’s IPO has now closed to investors, having raised US$1.24bn for 25% of its share capital.
The offering was fully subscribed, with shares sold at IQD22 (US$0.018) per share.
Trading on the Iraq Stock Exchange commenced today, with shares closing up 5.6% at IQD23.25 (US$0.019), said the company in a statement.
Qatari incumbent Qtel confirmed that it has increased its stake in the Iraqi subsidiary to 64.06% in a separate announcement today.
“Qtel previously announced its intention to increase its shareholding to 60% subject to clarification of the applicable foreign ownership restrictions by the Iraqi authorities which it has now received,” said the statement. “Consistent with the clarifications, Qtel increased its shareholding in Asiacell from 60% to 64.06% for a total consideration of IQD241.3bn (US$207.12m).”
An analyst with close knowledge of the company told TelecomFinance that Qtel had used the IPO as a mechanism to raise its stake in Asiacell. “Iraq is one of the most promising countries in Qtel’s portfolio,” he said.
The analyst went on to say that local appetite had been insufficient for the offering and that most shares went to foreign investors. “I don’t think Qtel had an exact 64.06% figure in their head before the stake increase,” he said. “Perhaps they chose to buy more shares to ensure a full subscription, as there was not enough demand from local investors.”
Faruk M. Rasool, MD of Asiacell, commented in today’s announcement: “This was a milestone event for us at Asiacell as well as being a transformative share offering for the Iraqi stock market.
“Demand for Asiacell shares exceeded our expectations as investors from across the country participated in this offering to become a shareholder in our company. We’ve also seen strong demand from investors outside of Iraq from institutions from the US, Europe and the Middle East.”
