Emad Makiya, CEO at Zain Iraq, has told Arabian Business that he is under pressure from the Iraqi government to list shares on the country’s fledgling stock exchange. An IPO was part of the deal when Zain bought Iraqna for US$1.2bn (E0.9bn) in December…
Emad Makiya, CEO at Zain Iraq, has told Arabian Business that he is under pressure from the Iraqi government to list shares on the country’s fledgling stock exchange. An IPO was part of the deal when Zain bought Iraqna for US$1.2bn (E0.9bn) in December 2007.
However, Makiya said there would be no IPO this year, declined to put a time frame on any IPO in 2011.
A decision will be more likely once Zain Iraq’s parent company in Kuwait decides whether to accept an offer for 46% of its shares from UAE-based incumbent Etisalat.
The CEO also complained that his company was losing between 25% and 30% of its revenue because of signal outages caused by electronic jamming equipment used by coalition forces in Iraq.
In the meantime, Zain Iraq is continuing local expansion, with plans to launch in Iraqi Kurdistan in January 2011.
Zain Iraq’s parent, Zain is listed on the Kuwait Stock Exchange. There are no restrictions on Zain shares as the company’s capital is 100% free float and publicly traded. The largest shareholder is the Kuwait Investment Authority with an approximate shareholding of 25%.