Iraq is now catching up, he said. "No foreign investors come to Iraq thinking they are investing in Switzerland, and for Iraqis themselves, these bombings are becoming daily occurrences."
Sunday's share sale by Asiacell more than doubled the market capitalization of the low-volume Iraq Stock Exchange in a single day, from $4.7 billion to $9.65 billion, said Rabee Securities.
Asiacell had offered a quarter of its shares, or 67.5 billion. The initial share price was set at 22 Iraqi dinars, or just under 2 cents. Foreigners bought about 70 percent of the float and Iraqis bought 30 percent, for a total of $1.24 billion, the brokerage firm said.
Regular trading of the shares is to begin Monday.
It was the first stock float on the ISX, which was set up in 2004, a year after the U.S.-led invasion that toppled Iraqi dictator Saddam Hussein. Taha al-Rubaye, the head of the exchange, said he believes it's also the largest initial public offering, or IPO, of shares in the Middle East in nearly five years.
Al-Rubaye said he hoped the Asiacell deal will send a signal to the government that investor interest is high and that it must do more, such as carrying out regulatory reforms, to encourage private business — in not just energy.
Iraq has a Gross Domestic Product of some $130 billion, largely due to its oil wealth, and 95 percent of the state budget comes from the proceeds of oil exports.
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