Text size:

  • Small
  • Normal
  • Large

Asiacell considers roadshow with IPO pick-up slow

Asiacell is considering a roadshow for share offering due to high demand particularly in the Gulf.

The Iraqi mobile operator Asiacell is considering a possible roadshow for its public share offering in the GCC.

Asiacell's lead manager for the offering, Rabee Securities, based in Baghdad, is currently working on a prospectus that will be distributed among international investors. "We are seeing a lot of interest, especially in the Gulf because of the better awareness of the process of IPOs and offerings.

"There is also an appetite for niche investments," said Diar Ahmed, the chief executive of Asiacell. "The Iraqi economy is growing and the telecoms sector is part of that."

Iraq's central bank expects its economy to grow by 9 per cent this year.

According to Mr Ahmed, international interest outweighs local interest in the offering.

Iraqi law does not require a prospectus for domestic offerings, but Asiacell produced an offering booklet in Arabic.

International institutions and investors can participate only if they have an account with one of the 47 brokers in Iraq.

Despite the interest and high levels of inquiries, pick-up has been slow.

"People are still unsure of the process of subscription, they are asking whether they need bank accounts. We set up a customer care line especially for it and we are receiving 20,000 to 25,000 calls every day," said Mr Ahmed.

Asiacell, which is 54 per cent owned by Qatar Telecom (Qtel), is floating 67.5 billion shares, about 25 per cent of the company's share capital with a fixed offer price of 22 Iraqi dinars per share. The company is hoping to raise almost US$1.3bn (Dh4.77bn) in the domestic offering, but there are still doubts whether there is enough liquidity on the Iraq Stock Exchange (ISX) to shore up $1.3bn of shares.

The subscription period will end on February 2 and Asiacell plans to list its shares on the ISX on February 3.

 

thamid@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National