Mobile operator Zain Iraq’s long-awaited stock market listing is expected to take place in early 2013 at the latest, according to the firm’s deputy CEO.
“We are hoping for the last quarter of this year, but the joint [stock] company got…
Mobile operator Zain Iraq’s long-awaited stock market listing is expected to take place in early 2013 at the latest, according to the firm’s deputy CEO.
“We are hoping for the last quarter of this year, but the joint [stock] company got delayed,” Hisham Akbar, Zain deputy chief executive and chief operating officer, told reporters in Dubai, according to media reports.
However, Nishit Lakhotia, senior analyst – research at SICO Bahrain, told TelecomFinance the actual date could be even later.
“The IPO will most likely be in 2013, although it is difficult to speculate whether this will be in the first or second quarter,” he commented. “There is concern whether the Iraqi market has sufficient appetite for all the three telecom companies to go public over the next year.”
Zain would decrease its stake in Zain Iraq to 51% from 76% should the IPO be fully subscribed, said Akbar.
Competitors Asiacell and France Telecom affiliate Korek are also planning to float on the Iraqi stock market. All three telcos have been fined by the regulator after missing an August deadline to sell a quarter of their shares via an IPO.
Regarding liquidity for telcos in the Iraqi market, Lakhotia added: “We will have to wait and see if the Iraqi market has enough liquidity for absorbing three telecom operators’ IPOs.
“Asiacell will likely float first, which may provide an indication of local market’s appetite and Zain can benefit from Asiacell’s experience. Zain may have to re-think their strategy of a single listing if there is insufficient appetite from local investors.”
