Zain Iraq IPO now expected to take place at the end of the year

Zain Group has said that its operation in Iraq would complete an IPO by the end of 2013, having originally predicted it would be undertaken by the middle of this year. The Iraq government required the country’s three cellcos to have listed by August 2011, but to date only Ooredoo-backed Asiacell has conformed.

The Zain Iraq IPO, which is being arranged by Citigroup, National Bank of Kuwait, and BNP Paribas, is expected to increase the Iraq Stock Exchange’s market capitalisation substantially.  The Iraqi bourse has been struggling to re-establish itself since 2004, when it re-opened following the US invasion.  Although the bourse went from 15 companies in 2004 to 86 in 2011, IPOs have slowed down, leading to the desire to see the country’s telecom providers listed.

The listing would reduce Zain Group’s stake in Zain Iraq from 76 per cent to 51 per cent.