2 of the 3 Mobile Telcos Select Banks for IPO

Asiacell has selected HSBC and Morgan Stanley to manage its initial public offering (IPO) on the Iraqi bourse, according to Bloomberg.

Chief Executive Officer Diar Ahmed told the news agency that the company will offer 25 percent of its shares, but did not specify when.

The company, which is an affiliate of Qatar Telecom, is in talks with Iraqi authorities to complete the listing procedures and set a timeframe, he said.

According to regulations, it should also convert from a limited liability company to a shareholding company before listing on the stock exchange.

Along with its two competitors, Zain and Korek Telecom, it was due to trade 25 percent of its shares on the Iraq Stock Exchange by the end of August, according to the terms of its licence.

Reports were unclear as to whether the three companies will be fined for missing the deadline.

Reuters reports that Zain has also begun the process of changing to a shareholding company, and  has appointed BNP Paribas, Citigroup and National Bank of Kuwait to manage its IPO, while Korek Telecom has yet to invite banks to pitch.

Iraq has 23 million mobile-phone subscribers, according to the Communications and Media Commission.

(Source: Reuters, Bloomberg)

One Response to 2 of the 3 Mobile Telcos Select Banks for IPO

  1. Julian 13th October 2011 at 08:48 #

    The ISX daily volume is around 145. I wonder what impact these TELCO IPO's will have on the ISX as a whole; a spectacular impact I would expect. Can anyone guess what the new daily volume average will be? Also with Morgan Stanley and Citigroup taking a very close look at the ISX, we will likely see an impact in the share value of other Iraqi Banks and Companies that have been on the market for some time.