GulfBase Live Support
05/02/2013 09:33 AST
Qatar Telecom used Iraqi unit Asiacell’s $ 1.27 billion share sale, Iraq’s largest ever flotation, to raise its stake to 64 percent in a vote of confidence in a country recovering from years of war and economic sanctions.
As the first big equity sale since a US-led invasion of 2003 toppled Saddam Hussein, the listing of Iraq’s No. 2 telecom operator was seen as a test of investor appetite, with other local telecoms firms also required to float as a condition of their operating licenses.
The initial verdict seems positive. Asiacell shareholders, led by managing director Faruq Mustafa Rasool, sold 67.5 billion shares in the offer, a quarter of its share capital, at 22 dinars apiece and it was fully subscribed by Sunday’s close.
A day later, Asiacell shares ended 5.7 percent higher at 23.25 dinars on the Iraq Stock Exchange (ISX).
Some 70 percent of the public offer went to foreign investors, including Qatar Telecom (Qtel).
Iraq did not have a mobile phone market under Saddam Hussein and the sector has blossomed since his fall to become the country’s fastest growing industry after oil.
With the economy forecast to grow 10 percent a year over the next three years, the potential for mobile phone operators is great, although there are also security and logistical problems.
Qtel said it had raised its stake in Asiacell to 64.1 percent — from 53.9 percent previously — implying it may have accounted for more than a third of the shares sold in the public offer.
Qtel agreed in June to pay $ 1.5 billion to double its holding in Asiacell to 60 percent as part of a broader strategy to tighten its control over its foreign units, which span the Middle East, Asia and Africa.
Part of that deal — a 6.1 percent stake — was subject to regulatory approval, which Qtel has now received, it said.
That means ahead of Asiacell’s bourse debut, Iraqi holdings in Asiacell fell to 28.6 percent from 46.1 percent, according to Reuters calculations. Yet a key aim of Asiacell’s flotation was to return some of the country’s wealth to its people.
“The stock is unlikely to be very liquid considering that a large part of the share sale was bought by foreign direct investors who are likely to keep the shares for a long time,” said Hassan Aldahan, chairman of Baghdad-based investment company Bain Alnahrain.
About 32.9 million Asiacell shares changed hands on the ISX on Monday. This trading was worth 759.17 million dinars ($ 651,600), with the bourse’s total turnover $ 4.02 million. That compares with a January daily bourse average of $ 4.59 million.
Asiacell’s offer valued the company at about $ 4.95 billion and its listing roughly doubles the bourse’s market value.
“This marks the birth of the ISX as a real stock market,” said Bartle Bull, portfolio manager of Northern Gulf Partners’ Iraq equity fund in New York. “Iraq has a far more open, dynamic business culture than many Gulf countries. The Iraqis are smarter and tougher. We should see some more companies coming.”
Asiacell’s bigger domestic rival Zain Iraq, a subsidiary of Kuwait’s Zain, as well as France Telecom affiliate Korek, are also required to offer a quarter of their shares under the terms of their operating licenses, having missed an initial August 2011 deadline to do so.
For more on this Click Here
Reuters
18/06/2020
Ooredoo recently held a webinar that shared learnings and insights into best innovation practices for the business ecosystem. The live "Best Practices" webinar, held on June 10, was co-hosted with Si
Gulf Times
13/08/2018
Ooredoo Oman, a top telecom provider in the Sultanate, has announced pre-registration for the long-awaited Samsung Galaxy Note 9 on the website. Users who sign up for a two-year contract on Ooredoo
Trade Arabia
30/07/2018
Telecom giant Ooredoo recorded a QR15.3bn in revenue for the first half of 2018 (H1 2018). The revenues were mainly driven by strong contributions from Qatar, Iraq, Oman, Kuwait, Tunisia and Myanmar.
The Peninsula
Ticker | Price | Volume |
---|
06/08/2020
Bahrain’s Investcorp slipped into a $165 million loss for the 12 months ended June 30, against profits of $131 million a year ago.
The COVID-19 played its part in the loss, as fee income c
Gulf News
06/08/2020
Aramex, a leading provider of logistics and transportation solutions, has registered a 4 per cent growth in its revenues for the second quarter which surged to hit AED1.32 billion ($359 million), com
Trade Arabia
05/08/2020
Abu Dhabi based investment company Waha Capital recorded a net loss of Dh27.2 million - attributable to shareholders - for the first six months of 2020, an improvement on the Dh124.38 million it rec
Gulf News
05/08/2020
First Abu Dhabi Bank (FAB), recently announced the issuance of the largest-ever Chinese Yuan (CNH) denominated dual-listed Formosa bond globally, with a CNH 3.25 billion five-year issuance.
The Gulf Today
05/08/2020
UAE's leading telecom services operator Etisalat Group has announced that the interim dividend of 15 fils per share for the second quarter will be paid out starting from August 11 through the First A
Trade Arabia