Zain Takes Step towards IPO

By John Lee.

Zain Iraq has moved a step closer to launching its mandatory initial public offering (IPO), by establishing a new holding company in Iraq through which it will list 25 percent of its shares on the Iraq Stock Exchange (ISX) towards the end of the year.

The new company, named Al-Khatem Telecommunications, floated 55.9 million shares on June 4 for one Iraqi dinar per share. The subscription period will last 30 days.

According to a report from The National, once this IPO is complete, the company can proceed with the 25 percent share offering for Zain Iraq.

Wael Ghanayem (pictured), the chief financial and operating officer at Zain Iraq, said:

"If you look at our growth in Iraq, we believe the IPO will be attractive and there will be good demand for the stock ... This is the second IPO, people are more educated about the processes."

Zain Iraq has hired Citigroup, the National Bank of Kuwait and BNP Paribas as advisers for the offering.

The company, with about 14 million subscribers, recorded a profit of $369 million last year, up 6 per cent from 2011.

It issued the following official statement on the move:

4 Responses to Zain Takes Step towards IPO

  1. Stephen 6th June 2013 at 19:50 #

    How do I get in to this IPO?
    I have Iraqi Dinars.
    I am an American citizen.
    Thank You!

  2. Qusay Razzaq 10th June 2013 at 08:28 #

    this initial 55.9 million shares is going to be quite hard for foreign investors to invest in since its requires physical presence and some paper work. However, once the company is ready to list in ISX, foreign clients can easily subscribe and buy shares. My advice to foreign clients is to wait until the listing.

  3. Qusay Razzaq 10th June 2013 at 08:30 #

    also, you need to keep in mind the demand will be far more that this 55.9 so investors will not get all what they subscribed for..... in asiacell's case, the percentage was only 0.001250 of what investors signed-up for.

  4. Stephen 10th June 2013 at 14:50 #

    Thank You!