A Market for Daredevils
|February 13, 2013||Filled under Iraq Daily News|
The largest IPO in the Middle East for five years has caused the crisis-ridden Iraq for a glimmer of hope. With success has AsiaCell penultimate Sunday placiert a quarter of its shares on the Iraqi Stock Exchange (ISX) in Baghdad. The 67.5 billion shares for each 22 Iraqi dinars (about $ 0.02) were fully subscribed. The second largest Iraqi mobile operator gave the revenue of 1.24 billion dollars. Foreign investors bought about 70% of the shares, the largest shareholder, Qatar Telecom, took the opportunity to increase its stake from 53.9% to 64.06%. In the first two trading days to put the shares 7%, lost end of the week but down slightly.
Other Companies In The Pipeline
With the successful issue of the market capitalization of companies listed on the stock exchange of about 4.7 billion to about 9.6 billion dollars has doubled. It also nourishes the hope that the stagnant trading on the stock market picks up little momentum. Analysts expect that finally the other two mobile operators, Zain Iraq and Korek Telecom, part-financed by Zain Kuwait and France Telecom, its obligation to comply with IPO. The granting of licenses to three operators in 2007 was linked to the rest, the company limited by shares to convert and a quarter of the shares put to August 2011 to the stock market.
Since Iraq one of the fastest growing telecommunications markets in the world, are a promising investors high returns. For additional optimism provide the growth potential of the underdeveloped banking sector, the need for major investment and fueled by oil revenue spending.
A High-Risk Market
At the 2004 stock market reopened around 90 companies from the financial, services, industry, agriculture and tourism are listed, with banking stocks dominate the trade. With the introduction of electronic trading in 2009, prices rose and the trading volume of short steep, but then again to fall heavily, and since then both have stagnated at a low level.
Dependence on oil, the poorly developed private sector and the lack of government regulation so far prevented a better performance and the inflow of foreign capital on a larger scale. That the stock market can not develop their potential, and the current political stalemate and the tense security situation is owed. The conflicts between Shiites, Sunnis and Kurds, who led the country a few years ago at the edge of the abyss, have worsened in recent times once more, and the violence has increased again. Iraq is and until further remains a high-risk market.
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