The article selected titled, “Foreign Dominate in Iraqi IPO”
discusses the largest Middle Eastern IPO (Initial Public Offering) since 2008.
Foreign investors purchased 70% of this “landmark Iraqi share offering”, which
is an indicator of the foreign investors confidence in the country in its
efforts to recover after years of war. The public offering of Asiacell
Communications, an Iraqi mobile phone operator had demand that exceeded $1.3
billion.
The article continues to discuss the high-level of foreign
interest being an indicator that investors are seeking hiring yields and are
willing to take the higher level of risk associated with it. An alternative
speculation includes the parent company, Qatar Telecom, using the IPO to
purchase new shares in order to recapture majority stake in the company. Either
way, this IPO is expected to increase the liquidity of Iraq’s stock market by
doubling the value of the companies traded on the exchange. The Iraqi stock
market or ISX started in 2004 and has 90 companies listed on it. The article
continues to discuss the outlook for 2013 performance of the Iraqi stock market
and the possible influence political unrest will have on the market.
This article connects to my future professor and current studies
as a business major. I was completely unaware that an Iraqi stock market was in
existence. Furthermore, I did not know there was so much foreign investor
interest. This proves Iraq and the Middle East is full of unknowns, at least to
me.
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