Strong demand from Iraq and abroad provides boost to the Iraq Stock Exchange
Sulaymaniyah, Iraq - ASIACELL COMMUNICATIONS, a leading provider of quality mobile telecommunications services in Iraq with 9.9 million subscribers as of September 2012, is pleased to announce the successful completion of its milestone share offer as thousands of investors across Iraq subscribe for the company's shares.
The company also announces today the admission of its Shares to the Official List of Securities maintained by the Iraq Securities Commission ("ISC") and to trading on the Iraq Stock Exchange ("ISX"), under the ticker "TASC".
Admission Details:
- The offer period for Iraq's first ever mass share offer is now closed to investors
- However, opportunities to purchase shares will follow post-offering
- The price of the share offer was set at IQD 22 per share implying a market capitalisation of $4.95 billion
- The offering raised $1.24 billion, representing 25% of its share capital
- The fully subscribed share offer evidenced high demand from Iraqi, Middle Eastern and international investors
- Asiacell is the largest share offer of all time in Iraq and the biggest equity offering in the Middle East since 2008
- The total number of transactions was c.2900
- Trading in the shares of Asiacell commence today on ISX, under the ticker TASC
Commenting on the successful share offer and admission to trading on the ISX, Mr. Faruk M. Rasool, Managing Director of Asiacell, said:
"This was a milestone event for us at Asiacell as well as being a transformative share offering for the Iraqi stock market. Demand for Asiacell shares exceeded our expectations as investors from across the country participated in this offering to become a shareholder in our company. We've also seen strong demand from investors outside of Iraq from institutions from the US, Europe and the Middle East.
"Looking ahead, we welcome our new shareholders to the Asiacell success story. The company has a clear strategy to grow our business across Iraq, offering our customers the best in network quality, cutting edge tailored packages and customer service. We look forward with confidence to delivering on our strategy and to the creation of value for all of our shareholders."
Advisers
Rabee Securities, Iraq's leading independent brokerage, acted as sole distributor and selling agent and Melak Iraq, an Iraqi Financial Advisory Firm, was sole adviser to the Company in respect of the Offer.
The Group
Asiacell holds a 15-year operating license issued by the Communications and Media Commission of Iraq in 2007 (the "License"), entitling it to build and operate a nationwide mobile telecommunications network. In 2009, Asiacell became the first mobile provider in Iraq to achieve nationwide coverage, serving all 18 of Iraq's governorates. Asiacell serves Iraq's capital, Baghdad, and all other major Iraqi cities, with a network that covers 97% of the Iraqi population. In 2011, Asiacell was recognized as the 'best GSM operator' in Iraq by the Ministry of Communications (the "MoC").
Asiacell predominantly offers prepaid mobile telecommunications services accounts for the majority of its subscriber base.
Asiacell enjoys a 43% revenue market share as end of September, 2012, and has 9.9 million individual and corporate subscribers.
Asiacell has consistently delivered strong financial performance with CAGR revenue growth of 22% from 2009 to 2011.
According to Iraqi GAAP, in the first 9 months 2012, the Company generated revenues of IQD 1,564 billion. Financial Year 2011 (12 months) revenue was 1,836 billion IQD
EBITDA in the first 9 months 2012 was IQD 824 billion. Financial Year 2011 (12 months) EBITDA was IQD 926 billion.
Net income in the first 9 months 2012 was 474 billion Iraqi dinars. Financial Year 2011 (12 months) net income was 504 billion Iraqi dinars.
Asiacell has an ARPU of 18,000 Iraqi dinars- per month, during the first 9 months 2012.
In addition to the classic Prepaid Line package, which serves over 53% of subscribers, the Company's prepaid service offering contains a number of tailored packages aimed at different market segments - including young people, women and an innovative service aimed at the millions of religious pilgrims who visit Iraq each year. Asiacell also provides postpaid services to corporate and individual subscribers.
Asiacell maintains a network of 84 main distributors and its services are available at over 12,000 individual points of sale across Iraq.
The Company also operates 20 directly-owned branded retail outlets, and a growing network of franchised stores.
For further information please contact:
Media:
FTI Consulting, Middle East
John Hobday
+971 50 464 8706
Hugh Barker
+971 50 248 7620
Maie Ahmed
+971 56 775 7639
FTI Consulting, London
+44 20 7831 3113
Neil Doyle
+44 777 1978 220
Jessica Liebmann
+44 779 5504 678
Disclaimer
Asiacell Communications PJSC accepts responsibility for the verification and accuracy of the information contained in this announcement.
Neither these materials nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada or Japan. These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment therefore. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
These materials are not an offer for sale of any securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Asiacell Communications PJSC has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
This announcement does not constitute or form part of, and should not be construed as, an offer of securities to the public in the United Kingdom, nor is it intended to be an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000 (as amended) of the United Kingdom. This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
This communication is distributed in any member state of the European Economic Area which applies Directive 2003/71/EC (this Directive together with any implementing measures in any member state, the "Prospectus Directive") only to those persons who are qualified investors within the meaning of Article 2(1)(e)of the Prospectus Directive in such member state, and such other persons as this document may be addressed on legal grounds, and no person that is not a relevant person may act or rely on this document or any of its contents.
Forward-Looking Statements
This announcement contains "forward-looking statements" that relate to future events, operations and performance. Such forward-looking statements are characterised by words such as "anticipates", "estimates", "expects", "believes", "intends", "plans", "may", "will", "should" and similar expressions, including their negative, but are not the sole means of identifying such statements. Asiacell Communications PJSC wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Asiacell Communications PJSC does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Iraq, rapid technological and market change in the industries Asiacell Communications PJSC operates in, as well as many other risks specifically related to the Company and its operations.
© Press Release 2013