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Zain Takes Step towards IPO
Posted on 06 June 2013. Tags: Al-Khatem, BNP Paribas, Citigroup, fundraising, IPO, National Bank of Kuwait, Stock Exchange, Zain
Pages: 1 2
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:
In compliance with the provisions of its telecom license, Atheer Telecom Iraq Limited (“Zain Iraq”) is required to offer at least 25% of its shares on the Iraq Stock Exchange (“ISX”). To that end, Zain Iraq has taken the following steps:
1. Since only Iraqi-domiciled joint-stock companies can list on the ISX, Zain Iraq’s shareholders, led by Mobile Telecommunications Company KSC (“MTC”), are in the process of establishing a joint-stock company under the name of Al-Khatem Telecommunications Company (“Al-Khatem”).
2. The Iraq Companies Law (21 of 1997) requires that Al-Khatem, as a joint stock company under formation, invite the public to subscribe to the capital at the time of incorporation. As such, Al-Khatem is offering 55.9 million shares for subscription at a price of One Iraqi Dinar per share for a period of thirty days from the date of 4 June 2013. This is a procedural step ahead of the future listing, mandated by Zain Iraq’s licence, which is currently planned in due course.
3. After completing this constituent public subscription process, and the fulfilment of other regulatory requirements, Al-Khatem expects to receive a final approval for incorporation from the Companies Registration Department (“CRD”). This will allow the Al-Khatem to commence the necessary steps towards a subsequent offer of 25% of its share capital on the ISX, subject to approval by the telecom and capital market regulatory authorities in Iraq.
(Sources: The National, Bloomberg, Zain)
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Posted on 06 June 2013. Tags: Al-Khatem, BNP Paribas, Citigroup, fundraising, IPO, National Bank of Kuwait, Stock Exchange, Zain
Pages: 1 2
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:
In compliance with the provisions of its telecom license, Atheer Telecom Iraq Limited (“Zain Iraq”) is required to offer at least 25% of its shares on the Iraq Stock Exchange (“ISX”). To that end, Zain Iraq has taken the following steps:
1. Since only Iraqi-domiciled joint-stock companies can list on the ISX, Zain Iraq’s shareholders, led by Mobile Telecommunications Company KSC (“MTC”), are in the process of establishing a joint-stock company under the name of Al-Khatem Telecommunications Company (“Al-Khatem”).
2. The Iraq Companies Law (21 of 1997) requires that Al-Khatem, as a joint stock company under formation, invite the public to subscribe to the capital at the time of incorporation. As such, Al-Khatem is offering 55.9 million shares for subscription at a price of One Iraqi Dinar per share for a period of thirty days from the date of 4 June 2013. This is a procedural step ahead of the future listing, mandated by Zain Iraq’s licence, which is currently planned in due course.
3. After completing this constituent public subscription process, and the fulfilment of other regulatory requirements, Al-Khatem expects to receive a final approval for incorporation from the Companies Registration Department (“CRD”). This will allow the Al-Khatem to commence the necessary steps towards a subsequent offer of 25% of its share capital on the ISX, subject to approval by the telecom and capital market regulatory authorities in Iraq.
(Sources: The National, Bloomberg, Zain)
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