Zawya Dow Jones/Dubai

Zain Iraq, a subsidiary of Kuwait’s Zain Group, has extended the time frame to launch an initial public offering and list its shares on the Iraq Stock Exchange, according to the chairman of the telco’s parent company.

Zain Group’s chief executive had previously stated that it would list the Iraq operation by the end of the first half of this year, but Asaad Ahmed al-Banwan, Zain Group’s chairman, said in an e-mailed statement following the company’s annual general meeting yesterday that the company was now aiming to list Zain Iraq by the end of 2013.

“In 2012, our operation in Iraq continued to be the market leader with respect to customer numbers and we expect further tangible growth opportunities there, especially on the back of the widespread expansion of our network into the northern regions of the country,” said al-Banwan. “Zain Group is also intensifying its efforts towards listing its Iraq operation on the Iraq Stock Exchange by 2013 as stipulated by the company’s licence.”

Zain Group did not indicate why the time frame for listing Zain Iraq had been extended. Zain Iraq’s closest competitor, Asiacell Communications, successfully listed shares on the ISX in February, raising about $1.3bn in a fully-subscribed offering, the largest IPO in the region since 2008.

All three Iraqi telcos had been required to float a quarter of their shares by August 2011 as part of their licence agreements with the Communications and Media Commission, but Zain Iraq and Korek, an affiliate of France Telecom, have yet to announce firm dates for offerings or listings on the ISX.

Zain Iraq grew revenues by 7% and net profit by 6% in 2012, compared to the previous year, Scott Gegenheimer, the chief executive of Zain Group, said in an e-mailed statement in February announcing the group’s results.

At a group level, net profit for the full year was 252.1mn Kuwaiti dinars ($883mn), compared with 284mn dinars the previous year, while revenue for the full year was 1.28bn dinars, compared with 1.32bn dinars in 2011.

 

 

 

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