Qtel looking to strengthen position in Asiacell through IPO

Qtel Group will take advantage of the upcoming stock market listing of the Iraqi cellco, Asiacell to raise its existing holding in the company, a stock exchange official has told Reuters.

In June 2012, Qtel entered into an agreement to double its shareholding in Asiacell from 30 per cent to 60 per cent, and currently owns just under 54 per cent of the cellco, which is listing 25 per cent of its shares on the Baghdad stock market in a move that will raise around US$1.3 billion.

Although Asiacell is required to list its shares on the stock market as a condition of its operating licence, there has been some ambiguity about which of the current shareholders is selling their stake, or if this would be diluting their existing holdings through a fresh placement of shares.

Layth Sulaiman, head of the ISX board of governors, told Reuters that he understood Qtel would not reduce its stake in Asiacell through the offer.

The shares will be listed from February 3 in what is one of the largest share offerings in the region for several years. The other two mobile networks are also required to list their shares on the stock exchange.