Jun 24 2015
25% of company's shares offered to the investor community, share price closes at 5.99 Iraqi Dinar, reflecting a market capitalization of US$9.4 billion
Al-Khatem Managing Director, Bader Al Kharafi: Zain Iraq will further grow its market leadership position rewarding all the company's stakeholders
Baghdad, June 24rd 2015: Further to the joint agreement and memorandum announced on April 28, 2015 between Al-Khatem J.S.C, parent company of Atheer Telecom Iraq Limited (trading under the brand name "Zain" in Iraq), the Iraqi CMC (Communications and Media Commission), the ISC (Iraq Securities Commission), the ISX ( Iraq Stock Exchange, and the IDC (Iraq Depositary Center), Al-Khatem announces the completion of its listing procedure and fulfilling all of its obligations towards the regulators in a successful manner within the required two months. Al-Khatem has now commenced trading its shares on the exchange and is open to public investment.
Zain has been operating in Iraq since 2003; investing in over US$5 billion to date establishing essential mobile telecommunications infrastructure in Iraq and employing over 2500 Iraqi nationals.
In accordance with its license terms, 25% of the equity of Al-Khatem was offered to the investor community on the Iraqi stock market by one of the founding shareholders of the Company. The first day of trading saw the share price closing at 5.99 (with an average price of 6.09) Iraqi Dinar (IQD) per share reflecting a market capitalization for Al-Khatem of 10.96 trillion IQD (US$ 9.4 billion) and leading to a substantial increase in the ISX 's total market capitalization.
Bader Al Kharafi, Managing Director of Al-Khatem and Vice-Chairman of Zain Group said, "This milestone of listing on the Iraq Stock Exchange and offering of shares to Iraqi nationals and investors reflects Zain's confidence and commitment to the future development of the telecommunications sector in Iraq. We thank all the regulators and the governing bodies, who have worked professionally and transparently throughout the entire process, for assisting us to arrive at this monumental position."
Al Kharafi continued, "We look forward to the participation of the investor community in one of the most profitable and resilient companies in Iraq and the region as the mobile operator enters a new phase in its growth strategy with the recent launching of 3G services across the country."
Al-Kharafi also noted that, "We have utmost faith in the Zain Iraq management team to overcome the unique market challenges and Zain Group will continue to support them in all facets of the operations. We are confident that Zain Iraq will further grow its market leadership position rewarding all the company's stakeholders."
Mr. Taha AbdulSalam, CEO of the ISX commented, "The success of any economy depends on its ability to attract investment capital whether foreign or local within the framework of joint-stock companies. That increases capital formation for the economy and contributes towards the private sector and the gross domestic product. That is the mechanism seen in establishing and operating of companies traded on the stock market, and so we expect the Al Khatem Telecom listing and trading of with a capital exceeding one trillion, eight hundred billion dinars and having more than 500 shareholders."
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