Asiacell Shares Sold on Iraq Bourse in Major Float
This is an article that discusses how Asiacell, one of three major telecom companies in Iraq sold a considerable amount of their shares to investors through the Baghdad exchange rate system. The telecommunications company sold twenty-five-percent of its shares to investors generating over one-billion dollars making this one of the biggest share offers in the Middle East’s history. The initial offer involved nearly sixty-eight billion shares along with the constraint of a licensing agreement, and a share price set at the Iraq currency value of twenty-two dinars; which would equal approximately two-cents converted to US dollars. The head of the Iraq Stock Exchange (ISX) states that this share offer increased the ISX to nine-billion; twice as much as the value of the ISX before Asiacell made the offer (Laub, 2013). The sale was controlled by Rabee Securities, who reported that the Initial Public Offering (IPO) was purchased by foreign investors securing close to two-thirds of the stock while normal trading proceedings will begin this week. According to Laub (2013), “The floatation on the Iraq Stock Exchange was seen as a test of investor confidence in the country” (p. 1). This could potentially restore confidence to international investors that the Iraqi market is no longer a threat as perceived by many due to the repeated violence and the political nature of the country. Asiacell has created possibilities for the Iraqi market which is likely to draw foreign and local investors (Laub, 2013, p. 1). This article relates to chapter ten, (Hill, 2013) as it deals with the foreign exchange market. In the introduction of chapter ten it explains how the foreign exchange market works (p. 324). In the article (2013) an Iraqi based company Asiacell has stimulated the Iraqi market by selling shares of the company to investors (p. 1). Asiacell has provided growth opportunities to Iraq. The nature of the foreign exchange...
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