Asiacell to be Top Holding in Invest AD's Iraq Fund

By John Lee.

Abu Dhabi's Invest AD plans to buy into the Asiacell IPO (initial public offering), making it the top holding in its Iraq fund.

Sherif Salem (pictured), the manager of the Invest AD Iraq Opportunity Fund, and one of our Expert Bloggers on Iraq Business News, said:

"Asiacell is going to be one of those stocks, that regardless of the price or valuations it sells at, will perform well. We plan to participate. The telecom sector is one of Iraq's biggest stories and our Iraq fund is based on that.

"Though penetration levels have reached 80 per cent, internet reach is still not like other places in the region, which means each user is not generating as much as he potentially would be in the future."

North Bank, which had a very profitable first nine months, is currently the top holding in the $19.5-million fund, with an 11 per cent allocation.

Geoffrey Batt, who manages the $39 million Euphrates Iraq Fund, commented:

"It would demonstrates that the ISX is a viable capital market ... It would also be a catalyst for more attractive companies that are private to list."

(Source: The National)

2 Responses to Asiacell to be Top Holding in Invest AD's Iraq Fund

  1. Tony 6th January 2013 at 17:12 #

    Asiacell plans to offers 25 of its shares and hopes to raise $1,3 billion.

    Let’s assume that Asiacell has 10 million customers slightly more than they believe to be optimistic. The proposed valuation of the company is $ 1,3 billion

    for 25% of the shares in other words $5,2 billion for 100% of the company. Each customer worth $520,- just dividing 5,2 billion by 10 million.

    Potential investors must be aware that there will be another competitor stepping in the Iraqi market very soon. This can hardly help Asiacell to increase its margin; the company will more likely have to fight to keep its market share.

    Be Careful with this one.

  2. 2COLLECTG 19th January 2013 at 05:35 #

    i wanted to get in on the new IPO but rabee want`s 100`000 usd to open a account would`nt send that much money to IRAQ IF I HAD IT!!!