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Showing results for tags 'zain'.
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Zain’s joint stock company in Iraq, ‘Al-Khatem’, lists on Iraqi Stock Exchange, completes first day of trading - 25% of company’s shares offered to the investor community, share price closes at 5.99 Iraqi Dinar, reflecting a market capitalization of US$9.4 billion - Al-Khatem Managing Director, Bader Al Kharafi: Zain Iraq will further grow its market leadership position rewarding all the company’s stakeholders Baghdad, June 24, 2015 Further to the joint agreement and memorandum announced on April 28, 2015 between Al-Khatem J.S.C, parent company of Atheer Telecom Iraq Limited (trading under the brand name “Zain” in Iraq), the Iraqi CMC (Communications and Media Commission), the ISC (Iraq Securities Commission), the ISX (Iraq Stock Exchange), and the IDC (Iraq Depositary Center), Al-Khatem announces the completion of its listing procedure and fulfilling all of its obligations towards the regulators in a successful manner within the required two months. Al-Khatem has now commenced trading its shares on the exchange and is open to public investment. Zain has been operating in Iraq since 2003; investing in over US$5 billion to date establishing essential mobile telecommunications infrastructure in Iraq and employing over 2500 Iraqi nationals. In accordance with its license terms, 25% of the equity of Al-Khatem was offered to the investor community on the Iraqi stock market by one of the founding shareholders of the Company. The first day of trading saw the share price closing at 5.99 (with an average price of 6.09) Iraqi Dinar (IQD) per share reflecting a market capitalization for Al-Khatem of 10.96 trillion IQD (US$ 9.4 billion) and leading to a substantial increase in the ISX’s total market capitalization. Bader Al Kharafi, Managing Director of Al-Khatem and Vice-Chairman of Zain Group said, “This milestone of listing on the Iraq Stock Exchange and offering of shares to Iraqi nationals and investors reflects Zain’s confidence and commitment to the future development of the telecommunications sector in Iraq. We thank all the regulators and the governing bodies, who have worked professionally and transparently throughout the entire process, for assisting us to arrive at this monumental position.” Al Kharafi continued, “We look forward to the participation of the investor community in one of the most profitable and resilient companies in Iraq and the region as the mobile operator enters a new phase in its growth strategy with the recent launching of 3G services across the country.” Al-Kharafi also noted that, "We have utmost faith in the Zain Iraq management team to overcome the unique market challenges and Zain Group will continue to support them in all facets of the operations. We are confident that Zain Iraq will further grow its market leadership position rewarding all the company’s stakeholders." Mr. Taha AbdulSalam, CEO of the ISX commented, “The success of any economy depends on its ability to attract investment capital whether foreign or local within the framework of joint-stock companies. That increases capital formation for the economy and contributes towards the private sector and the gross domestic product. That is the mechanism seen in establishing and operating of companies traded on the stock market, and so we expect the Al Khatem Telecom listing and trading of with a capital exceeding one trillion, eight hundred billion dinars and having more than 500 shareholders.” All interested investors can acquire shares in Al-Khatem through contacting any of the authorized brokers listed on the Iraq Stock Exchange. END -
okay so with all the buzz happening about zain actively trading the isx on june 23rd, what are you all's strategy? i have to admit that i may have jumped the gun on asiacell in 2013 at its ipo. although i have received nice dividend checks to help make up for it, i took a big hit from its poor performance. i definitely don't want to repeat those mistakes. on the other side though, from how i am reading things, TZNI (zain) will not debut like TASC did. instead of an IPO, they are going to simply allow the demand for the stock decide its price and so on june 23rd they will release 457B shares on the market. i think this may reduce some of the risk inherent in the IPO process like we saw with TASC. i also wonder what affect something this huge will initially have on the market. amazing times as we are seeing the isx's capital increase by leaps and bounds. Thoughts?
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Telco IPOs a Bullish Sign Posted on 05 October 2011. Tags: Asiacell, ISX, Korek, Zain The mobile phone operators are finally getting their IPOs [initial public offerings - A company's first offering of common stock to the public] organized. Recently Asiacell and Zain began conversions to joint stock ownership. Zain is also reported to have engaged Citibank and BNP Paribas to work on valuation. So far as I know, Korek has not been in the news but it is presumably on a similar track.These will be enormous offerings for a market as small as the ISX. Each company is required by the conditions of its license to list 25% of its shares. Asiacell alone will have to list 67.5 bn shares. (See this post.) At par (IQD 1), that would be about US$ 58 mn and they will certainly be looking for a higher price than that. With ISX daily volume now averaging only around US$ 2 mn, the total for the three IPOs could easily be the equivalent of a year’s worth of trading. You might think the ISX would be overwhelmed. In fact, shouldn’t the market be falling already, as people raise cash for the new issues? Actually there’s no cause for alarm. The companies clearly will not be trying to raise hundreds of millions of US dollars from local investors. The involvement of Citi and BNP makes it obvious that the main focus will be on foreign institutions, most of which are not yet in Iraq at all. For these investors, the key obstacle to investing in Iraqi shares is the lack of a custodian bank. (See thispost for more on the custody problem.) But this will be easy to fix. According to the Word Bank’s Republic of Iraq Financial Sector Review (p. 54), “a major international bank” [i.e. HSBC] has already made the necessary preparations to provide custody services and is just “waiting for the necessary licenses to be granted.” (There’s a link to the World Bank report here.) The real significance of the IPOs is that they can provide the stimulus necessary to get those licenses issued. That, in turn, will allow a host of new foreign investors, potentially commanding far greater amounts of capital than the telcos will be raising, to get into the market. This portends not so much a flood of new shares as a deluge of new money. ================================ i must admit that in my trading strategy, i lost track of the significance of the telecoms highlighted in the above article. digging up this article from the past has helped me realign some thinking. asiacell and zain are definitely foreign investor hooks into the ISX. their inclusion on the bourse not only multiplies its size but also pressures the isc to get custodian banks registered and operating. THIS is where we will make a killing, the custodian banks coming online and directing foreign capital into ISX telecos. now i am thinking it is best to play the telecoms as a long term strategy. buy and hold.
