Wednesday, Jun 22, 2011
DUBAI (Zawya Dow Jones)--Iraqi mobile phone operator Asiacell, a unit of Qatar Telecom, said Wednesday it is concerned that the local stock market may not be sufficiently liquid to ensure the successful sale of a 25%-stake in the telco through an initial public offering.
"Asiacell has expressed its concerns regarding the capacity of the Iraqi stock market to absorb IPOs of one or more telecom operators at the levels called for under the license," the telco said in an emailed statement to Zawya Dow Jones.
Under the license awared to Asiacell by Iraq's Communication and Media Commission, or CMC, in August 2007, the telco is required to sell off a 25% stake via IPO within four years, the operator said.
Asiacell said it is still in talks with authorities in Baghdad over the IPO.
"The timing of an IPO may depend on clarifications on how to implement the requirements of the license, the stock market rules and Iraqi company law," Asiacell said.
Iraq's two other operators--Zain Irak and Korek Telecom--have also said they are committed to the IPO to meet their license requirement.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
22-06-11 1427GMT
