Zain Iraq to list on Iraq Stock Exchange during 2015

Zain Iraq to list on Iraq Stock Exchange during 2015


 

  • 25% of Al Khatem joint-stock company will be offered to investors.
  • Zain Iraq’s presence on the ISX is set to give a major boost to the operation and value as it joins 95 other corporate listed entities.

Zain Group, a leading telecommunications operator in the Middle East and Africa, announces that following the approval last month by the Iraq Securities Commission (ISC) of Al Khatem JSC’s (Zain’s joint-stock company in Iraq) application to list on the Iraq Stock Exchange (ISX), the company is in the process of carrying out all necessary and statutory procedures to ensure the company is listed in 2015.

Zain Group Board of Directors has formally approved offering shares, amounting to up to 25% of the equity of Al Khatem, held by Zain Group in fulfillment of the conditions for the listing of Al Khatem on the ISX in line with the conditions expressed in the operating license awarded to the company in Iraq by the Communications and Media Commission (CMC).

Once listed, the presence of Al Khatem a multi-billion dollar valued entity, on the Iraqi bourse will add substantially to the overall value of the ISX’s market capitalization to exceed double-digit billions of dollars, stimulating and attracting additional Foreign Direct Investment onto the ISX. Al Khatem will join 95 other Iraqi corporate entities that are currently traded on the ISX.

Commenting on the progress that has been made towards listing the operation in Iraq on the ISX, Chairman of Al Khatem JSC and Zain Iraq, Mohammed Charchafchi said, “It is gratifying that the process to list our entity in Iraq is nearing completion, with Zain Iraq actively working towards the offer of shares to the Iraqi public and investment community. By doing so, we are offering investors the opportunity to share in the success of one of the country’s leading corporate entities, and to stand with us as we embark on our next phase of development and growth.”

Bader Al Kharafi, Managing Director of Al Khatem JSC and Vice-Chairman of Zain Group said, “With the launch of 3.9G services in Iraq at the beginning of the year, and the further investment in our infrastructure, we believe that substantial upside potential still exists in the Iraq telecom market despite challenges raised by the security situation in the country.”

Both Mr. Charchafchi and Mr. Al Kharafi noted their appreciation to the Iraqi authorities jointly stating, “We would like to thank all government officials at the CMC, ISC, and the ISX for their professionalism, and to take this opportunity to reiterate Zain Group’s commitment to operating successfully in Iraq.”

Zain Group announced the creation of Al Khatem as a private joint-stock company and parent company of Atheer Telecom Iraq Limited in July 2013, in preparation for the listing process on the ISX. Al Khatem’s listing on the ISX is expected to fulfill all of the company’s license obligations.