The Libyan government is planning to launch an IPO for its mobile operator Libyana next year, in order to open the telecoms sector to private investors.
Libyana and Al Madar, the only mobile players in the country, are both controlled by state-owned…
The Libyan government is planning to launch an IPO for its mobile operator Libyana next year, in order to open the telecoms sector to private investors.
Libyana and Al Madar, the only mobile players in the country, are both controlled by state-owned Libyan Post, Telecommunication and Information Technology (LPTIC).
Faisal Gergarb, the LPTIC chairman, was quoted saying on the sidelines of a conference that Libyana could make its debut on the Tripoli stock exchange in Q2 2014 but declined to comment further on the situation.
But he reportedly added that Al Madar would be merged with telecoms holding Lap GreenN to focus on international expansion. Al Madar may also be listed by the end of next year, Gergarb said.
Commenting on Libya’s plans to privatise Libyana, Matthew Reed, principal analyst at Informa Telecoms & Media, said that several foreign operators might be interested in the assets, including Etisalat, Orange, Ooredoo and Zain.
“These companies had previously expressed interest in the Libyan market so they might look at the operators given the revenue opportunities in the country.”
But Reed noted that in the aftermath of the conflict, uncertainties in the country, and region as a whole, are still strong and could derail IPO plans. “Also, for the past six to seven years, there have been talks about privatisation, which have yet to materialise. And the current government is a transitional one so plans could change under a new leadership.”
Libya’s telecoms market is currently seeing a revival of activity two years after the end of the civil war. The government recently announced plans to award a third mobile licence, while Lap GreenN is reportedly interested in acquiring a stake in Tunisie Telecom.
Although its CEO Wafik Al Shater declined to comment on the rumours, he told TelecomFinance in a recent interview that the company’s focus is on developing its existing operating companies, including evaluating opportunities for in-market consolidation.
