Zain Iraq prepares for IPO-newspaper

Zain Iraq prepares for IPO-newspaper

Kuwait telco giant Zain's Iraqi unit prepares to launch IPO expected to value at $80 million, according to an unnamed source.

June 19, 2011 10:12 by p.deleon

The Iraqi unit of Kuwaiti telecoms firm Zain is preparing to launch an initial public offering (IPO) to comply with the terms of its mobile license, an unnamed source said in published remarks on Sunday.

“Officials in Iraq will be informed about Zain’s readiness and (the firm will) enquire whether or not the current time is appropriate for the economy,” said Kuwait Arabic daily al-Qabas.

The offering is expected to value a 20 percent stake at $80 million, the source said.

Zain Iraq must launch an IPO within four years of winning its license, which was awarded in August 2007. The shares would then list on the Iraq bourse.

Zain’s 12 million mobile subscribers in Iraq make it the market leader, but it faces stiffening competition from AsiaCell, part-owned by Qatar Telecom (Qtel), and Iraqi Kurdistan-based Korek Telecom. (Reporting by Angie Galal; Editing by Matt Smith)