Asiacell launches IPO of 25 per cent of its stock

Iraq’s Asiacell has set the price for its delayed stock market listing and expects to raise US$1.35 billion from the sale of 25 per cent of its shares on the Baghdad stock market.

The stock market floatation is a condition of its operating licence, and the company’s two rivals, Zain and Korek are also late in their listings. They were supposed to have offered shares to the public in late 2011.

However, there are concerns that a US$1.35 billion floatation may be difficult for the local stock market to absorb, as its total capitalisation currently stands at around US$4 billion. With the other two networks also required to list shares, the stock market will be dominated by the telecom companies.

Asiacell’s share offering opens today and closes on February 2 with trading due to start on the following day.

Qtel Group currently owns a 54 per cent stake in the Iraqi mobile network.