The CEO of Zain Iraq has reportedly stressed the company will do its best to fulfil its requirement to list on the local bourse this year, although he – and others – have cautioned this may not be possible.
Saudi Arabia-based Arab News quoted…
The CEO of Zain Iraq has reportedly stressed the company will do its best to fulfil its requirement to list on the local bourse this year, although he – and others – have cautioned this may not be possible.
Saudi Arabia-based Arab News quoted Emad Makiya, CEO of the Iraqi unit of the Kuwait-based mobile operator, as saying Zain Iraq is working with the company register and the Iraq Stock Exchange (ISX) to float 25% of its shares – a requirement under the terms of its operating licence.
“We’re pushing really hard,” the paper quoted him as saying.
However, Makiya reportedly conceded “it’s hard to say” whether the company will indeed list in 2012, before which it must become a shareholder-owned company and obtain the necessary approvals from the ISX board and the relevant regulatory authority.
Zain Iraq and fellow local mobile operators Asiacell and Korek are all required to host IPOs on the ISX under the terms of their operating licences. However, all three missed the initial August 2011 deadline, claiming the local bourse wasn’t ready to handle their listings.
Commenting on the situation, a legal expert with knowledge of the Iraqi telecoms sector told TelecomFinance he would be surprised if Zain and/or its rivals list this year. In his view, the relevant legislation is currently too unclear and inconsistent and he also warned that the local bourse might be ill-equipped to handle the listings of three such large companies, particularly simultaneously.
If Zain does decide to push ahead with an IPO this year, he said its rivals may choose to see what happens before proceeding themselves.
