Iraqi telco Asiacell opened its IPO to investors today, aiming to raise at least US$1.35bn for 25% of its share capital.
The company announced that 67.503 billion shares, representing a quarter of the company, are available to investors for a minimum of…
Iraqi telco Asiacell opened its IPO to investors today, aiming to raise at least US$1.35bn for 25% of its share capital.
The company announced that 67.503 billion shares, representing a quarter of the company, are available to investors for a minimum of IQD22 (US$0.02) per share and that the subscription period is open until 2 February.
Trading is expected to begin on 3 February on the Iraqi stock exchange under the ticker “TASC”.
An analyst familiar with the company told TelecomFinance today that he did not expect the shares to be sold much higher than the minimum price of IQD22. “It’s not that cheap a valuation,” he said. “We’ll have to wait and see though, as it depends on market appetite; it’s an interesting testing ground.”
As TelecomFinance previously reported, Asiacell lost Morgan Stanley and HSBC as bookrunners for the IPO in September and December respectively. The departures leave Baghdad-based broker Rabee Securities as sole distributor and selling agent and Melak Iraq, an Iraqi financial advisory firm, as sole adviser.
Analysts have suggested that the departure of global banks from the sale could make it difficult to pitch the IPO to international investors, leaving the telco reliant on local investor appetite which could prove challenging.
“It’s an exciting day for us all – we are inviting all Iraqis – whether they wish to buy small or large number of shares – to own a part of Asiacell, a truly Iraqi success story,” Faruk M. Rasool, MD at Asiacell, said in today’s statement. “We are building on very solid foundations and our plan is to continue to offer our subscribers ever better quality network coverage, the best customer service and innovative features. We want to share our future growth with an expanded group of Iraqis.”
