Zain Iraq is establishing a joint stock company to allow it to list 25% of its shares on the Iraqi Stock Market.
Zain Iraq's shareholders, led by Mobile Telecommunications Company KSC, are establishing the joint-stock company under the name Al-Khatem Telecommunications Company (Al-Khatem). Under Iraqi law, only Iraqi-domiciled joint-stock companies can list on the ISX.
“Al-Khatem is offering 55.9 million shares for subscription for a period of thirty days from the date of 4 June 2013. This is a procedural step ahead of the future listing, mandated by Zain Iraq’s licence, which is currently planned in due course,” Zain Iraq said in a statement.
The telco added that after completing this “constituent public subscription process” and the fulfilment of other regulatory requirements, Al-Khatem expects to receive a final approval for incorporation from the Companies Registration Department. “This will allow Al-Khatem to begin the necessary steps to list 25% of its share capital on the ISX, subject to approval by the telecom and capital market regulatory authorities in Iraq,” the statement said.
Zain Iraq's main rival, Asiacell, staged its IPO earlier in the year.