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«How can I invest in stocks? Question arises in the Declaration of the Iraqi Stock Exchange, published in local newspapers over the past weeks. Then reassures declaration readers that the process easy and advise them to contact brokerage firms to learn the details, as we read in another ad for the company «Iraqi Asiacell mobile phone service provider:« Be ready, we are ready.
Will be available to investors this month an opportunity to buy shares amid an economic boom fueled by oil, as it strives «Asiacell» to collect $ 1.35 billion at least by offering 25 percent of its shares in the market for the Baghdad Stock Exchange, what would the largest initial public offering of shares in Iraq and one of the largest insertion operations in the Middle East in recent years, most notably in Iraq since the invasion in 2003, and will be seen as a test of investors' confidence in the economy is recovering from years of war and political unrest and sanctions.
Officials hope to recreate the success of the stock offering and attract foreign investment, and help transform stock market into a useful tool for Iraqi companies to raise funds for expansion. But the financial system small and underdeveloped to hamper growth, which could hinder the inclusion of «Asiacell and prevents the sale of some of the offered shares. The Iraqi Stock Exchange could face some trouble in absorbing new offering, investors may also find foreigners interested difficulty in transfer funds to Iraq.
Poor economic climate
The expert pointed Saad al-Bayati, the Iraqi economy that «the weak economic climate because of political tensions and the lack of security and the flight of capital threatens such large IPO.
She drew «Asiacell, which owns« Qatar Telecom »54 percent of its shares, said in a statement last week that it will sell 67.503 billion shares of 22 Iraqi dinars at least ($ 0.02) per share in the initial public offering, which began yesterday. It is expected that this will be offering is the first of three operations to include the telecom Iraqi, as must «Asiacell» and rivals Mahlitin «Zain Iraq», and «Korek Telecom» of the «France Telecom», gather capital through IPOs as a condition for operating licenses mobile services from the government and $ 1.25 billion. Did not abide by the three companies a deadline earlier solution in August 2011, and pretended that the stock market was not as prepared should the time, but paid fines delay. Authorities resorted to the condition of listing on the stock exchange in order to encourage private ownership in the economy is still state-owned companies dominated, and the distribution of wealth resulting from the recovery of the economy on the population.
The executive director of the Iraqi Stock Exchange, Taha Abdul-Salam said in a statement to the agency «Reuters», that «the shares Asiacell in the third of February will be the next gift to the market through the addition of the telecommunications sector for options investors», pointing out that there are about 85 companies listed on the Stock Exchange president whose index fell nearly eight percent last year, and highly concentrated market value in the banking sector, despite the presence of the shares in the sectors of industry, insurance, hotels and agriculture. The expectation of increased trading in the stock market, which amounted to about three million dollars a day last year, including 10 percent almost thanks insertion.
The expected rate of growth
May become telecommunications companies bet big in Iraq in the long term, as International Monetary Fund predicted growth of the Iraqi economy more than 10 percent this year and nine percent at least annually during the next five years, with the support of the growth of oil production, what would enhance the demand for advanced data services.
And announced «Asiacell that its net income reached 474 billion dinars during the first nine months of last year, compared to 505 billion in 2011, confirming that it acquires 43 percent of the cellular market revenues and number of subscribers reached 9.9 million.
And based on the price of 22 dinars per share in the IPO process, is likely to be the company's shares valued at about 9.6 times their expected profits last year. It may not witness the initial public offering for «Asiacell» smooth same predictable economic prospects in the long term, do not exceed the current market value of the Iraqi Stock Exchange, on 5.6 trillion dinars (4.8 billion dollars), and thus may not accommodate the inclusion of «Asiacell» easily at once , is also expected to double the inclusion of the three telecom companies market value of the stock to nearly double.
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