View Full Version : Zain Iraq - Just Another Dead IPO ?

01-07-2014, 12:22 AM
You be the Judge - thanks to Hue Mi for original post...

Before you get too excited.... remember the Asiacell IPO hype last Feb. ? Purchase price 22 dinars (min.)...now trading at 18.5 dinars each



http://www.isx-iq.net/isxportal/portal/companyprofilecontainer.html?companyCode=TASC (http://www.isx-iq.net/isxportal/portal/companyprofilecontainer.html?companyCode=TASCBy)

Khalid Al-Ansary and Nayla Razzouk Feb 3, 2013 9:56 AM ET
Asiacell Communications PJSC’s share listing in Baghdad today, after the largest initial public offering in the Middle East (http://topics.bloomberg.com/middle-east/) since 2008, will help lure liquidity and foreign investment to the bourse, the Iraq (http://topics.bloomberg.com/iraq/) Stock Exchange chief said.
“The success of the Asiacell shares selling today proved that there is Iraqi and non-Iraqi liquid money willing to be invested in the Iraq Stock Exchange and in Asiacell shares,” Taha Ahmed Abdul-Salam al-Rubaye told reporters in Baghdad today. Trading on the telecommunications company’s shares starts tomorrow, he said.
The IPO, which closed Feb. 2, was fully subscribed, as Asiacell sold all 67.5 billion shares, or 25 percent of its share capital, at a minimum of 22 dinars each, he said. Foreign investors bought 70 percent of the offering and Iraqis the remainder, Rabee Securities, the sole organizer of the IPO, said in an e-mailed statement today.

Gignhaimr: Zain Iraq is preparing for public listing on stock exchange market in 2014
Gignhaimr: Zain Iraq is preparing for public listing on the stock exchange market in 2014 (http://www.mustaqila.com/2014/01/%D8%AC%D9%8A%D8%AC%D9%86%D9%87%D8%A7%D9%8A%D9%85%D 8%B1-%D8%B2%D9%8A%D9%86-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D8%AA%D8%B3%D8%AA%D8%B9%D8%AF-%D9%84%D8%A5%D8%AF%D8%B1%D8%A7%D8%AC-%D8%A3%D8%B3%D9%87/)

http://www.mustaqila.com/wp-content/uploads/2014/01/%D8%AC%D9%8A%D8%AC%D9%86%D9%87%D8%A7%D9%8A%D9%85%D 8%B1-%D8%B2%D9%8A%D9%86-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-370x267.jpg

Date posted: 10: 34 am, January 5, 2014

Baghdad (independent) ... Said gignhaimr CEO, Zain Group to acquire neighboring telecommunications companies may also be an important means to allow for the Zain Group to become a provider of integrated services, and to expand into new service areas, adding "during the next three to five years!! move more in that area, adding that for Zain Iraq seems on its way to summon the strength to move, the company is preparing to publicly traded shares in the Iraqi stock exchange during the year 2014, as it's already established local company based Iraq to implement initial public offering.

Asked in an interview with gignhaimr magazine "Combs" Middle East and North Africa and seen by the (independent) "we are interested in expansion? The answer is definitely Yes, "but it should be strategic and financial sense, so we will not we behind acquisitions, mobile communications operators: given, I want first to make sure it's in the Middle East and North Africa, and the most current opportunities exist in North Africa".

Say gignhaimr to acquire neighboring telecommunications companies may also be an important means to allow for the Zain Group to become a provider of integrated services, and to expand into new service areas, adding "during the next three to five years!! move more in that area, it is true that there are a lot of regulatory hurdles but we are aware that anything that moves in the direction of services M2M and IP, and data services, there will be no voice in the next 10 years.

And all the services are data services at 100 percent and we want to move in that direction, and there are a lot of things that can be done in the areas of fiber optics, and mobile content, services, etc.

Gignhaimr believes that it is particularly important in the mobile telecommunications market experiencing growing revenue contraction voice calls and text messaging, because of the proliferation of so-called OTT services, also believes it is important for the Zain Group to build an expanded platform allows customers to access to services anytime, anywhere and through any device.

Through the pursuit of revenue through data services, regard gignhaimr as the group will be able to offset declines in revenue from voice services, and revenue from text messages, the regressions that affect the entire telecommunications industry.

I think logically adds that we can continue to grow our revenue, not necessarily directly from voice services, and data services to existing clients, but also by neighboring businesses and areas not explored fully.

Data services plan

And reflected the importance of data services in the second quarter of the Zain Group, in fact, the data services revenue growth at an annual rate of 24 percent, excluding revenue from text messaging services and value added services, the net income of broadband mobile broadband contributed 13 percent of total revenue collection services during the second quarter.

If you calculate the income text messaging services and value added services, data services are contributed by 21 percent of the total revenue of the Zain Group.

Gignhaimr said that the growth in revenue from non-voice services was a reflection of effective investment in broadband networks, especially in the area of infrastructure networks-LTE (LTE), which are networks that contributed only on future consolidation processes, but also allow digital content services more effectively.

Gignhaimr added that there is considerable scope for growth in data services, especially bearing in mind that Iraq has not given a third generation license.

In the context of the recent investments in networking, gignhaimr noted that Zain launched LTE networks already in Saudi Arabia, Kuwait and Bahrain, as well as 3 g and 3.5 G, 2.4 G high speed in all countries except Iraq.

Even in Iraq, the Group's network has been updated so that it is ready to offer 3 g services, once you get the license and spectrum, and earlier this year, Zain has succeeded in securing access to additional financing after signing with 7 banks worth $700 million.

Gignhaimr says that this credit facility is used for several purposes, including investment in network development.

He gignhaimr if you look at the net margin debt at the level of 0.85, and this means that we have prepared at a reasonable level of debt, and so we have room to accommodate more debt, but it is not specified for a particular thing.

Gignhaimr said that Zain Group intends to pump large investments in their networks, stating that it did not have any problem when it comes to investing in capital expenditures, say the last few years may have seen some decline in investments in Iraq, specifically during the years 2010 and 2011, but this situation is changing, and we invest heavily over the last 18 months, so I don't see any problem in any aspect of investment, we have free cash flows.