Number one telecom operator of Kuwait, Zain stated on this Sunday that its Iraqi unit would complete an initial public offering by the end of 2013. Clearly, a delay has been signaled by the company in its sale process.
In the year of 2012, Zain stated that it would launch an IPO for the first part of 2013. But, the chairman of the company have extended the target date, making the process prolonged.
Asaad Ahmedal-Banwan told shareholders at the company's annual meeting that the company is considering the all legal processes minutely and it would require a bit time for the company to finish this complicated process. At the end of this year, the company will be able to finish its public offerings as stated by Asaad Ahmedal-Banwan.
Zain Iraq along with rival mobile operators Asiacell, an Ooredoo (Qatar Telecom) subsidiary, and France Telecom affiliate Korek all missed an August 2011 deadline to float a quarter of their shares and list on the Iraq Stock Exchange (ISX).
So far, Asiacell is the only company to finish up its process of launching IPO. In February, Asiacell debuted in ISX, following a fully-subscribed $1.27 billion share sale, which is considered as the largest share sell in Iraq. Yet much of this demand came from Ooredoo, which increased its stake to 64 percent from 53.9 percent as part of the offering.
Ooredoo stepped to meet a shortfall in demand from retail and institutional investors. Combined market value of about $9.63 billion, Asiacell now accounts for more than half of the ISX’s fund. It has experienced a boost in daily turnover to $7.1 million in February from$4.6 million a month earlier. Federation of Euro-Asian Stock Exchanges released this data.
For a first few days, Asiacell shares surged. However, now it has fallen back to their IPO price of 22 dinars. Zain is the sole seller of Zain Iraq's IPO. According to the company statement, this will cut firm's holding to 51 percent from 76 percent.