Zain Group may be the sole seller in its Iraqi unit’s IPO and could cut its stake by a significant amount while maintaining majority control in the opco, according to a report from Reuters.
Zain Iraq must float 25% of its shares on the Iraq Stock Exchange (ISX) as part of its licence.
Zain Iraq expects to finalise details of the IPO by the end of June, according to the report, which cited Wael Ghanayem, Zain Iraq's CFO.
If the IPO is fully subscribed, Zain Group’s stake in the Iraqi opco could fall to 51% from 76%. It was not clear if Zain Iraq plans to sell more than 25% in the IPO, the report stated.
Zain Iraq’s main competitor, Asiacell, staged its IPO last month. The $1.35 billion IPO, involving a quarter of the company's share capital, was fully subscribed, the Iraq Stock Exchange said earlier in the month.
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