Iraq telecoms IPO: turning point?

Iraqi telecoms firm Asiacell’s $1.3bn initial public offering is the Middle East’s largest in four years.

There are also hopes the issue will mark a turning point in the history of post-Saddam Iraq, with the authorities seeking to broaden public share ownership throughout the country. But the buzz around the landmark event has not travelled far.

The sole book-runner, Rabee Securities, says the shares on offer have already been placed, mainly to Iraqi and Gulf investors. Strong support from “friends and family” of Asiacell’s founders in the Kurdish city of Suleymaniya in Northern Iraq is helping propel demand.

Qtel, which owns a 54 per cent stake in the second largest telecoms firm in Iraq, wants to increase its stake to around 60 per cent, which has spurred related demand in Doha as Qatari investors come in on Qtel’s coat-tails.

Other Gulf entities, such as investment houses linked to the state, are expressing strong demand in the firm, which has 43 per cent market share with around 10m subscribers, says Shwan Taha of Rabee.

Financial Times: Beyondbrics