Zain Iraq forms onshore joint-stock company in preparation for listing

Zain Group has announced that in compliance with the provisions of its telecom licence in Iraq, Atheer Telecom Iraq (Zain Iraq) is required to offer at least 25 per cent 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 Zain, 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 requires that Al-Khatem 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 for a period of thirty days from June 4, 2013.

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. This will allow Al-Khatem to commence the necessary steps towards a subsequent offer of 25 per cent of its share capital on the ISX, subject to approval by the telecom and capital market regulatory authorities in Iraq.