MyAdhan Blog

Link: Kuwait: Zain planning $4bn london share offer

Bahrain-based telecom giant Zain expects net profit to grow at least five per cent this year and projected a London flotation next year worth about $4 billion, its chief executive said yesterday. The third-largest Arab telecoms company by market value is also expecting to make a share offer in Bahrain this June, Saad Al Barrak said. “We expect a little more than 5pc compared to last year, he said, when asked for this year’s forecast. “Our expectations for next year: a big increase even in net profit. We are talking about more than 30pc,” he added. Zain is investing in Saudi Arabia where, along with other investors, it won the kingdom’s third mobile phone licence. It also bought Iraqi operator Iraqna for $1.2bn. Al Barrak said Zain was considering a share offer on the London Stock Exchange in the first quarter of next year, worth about $4bn. “We are going ahead with it. We expect by the start of next year we will be ready for listing,” he said, adding details were still being studied and new shares could also be sold on another international stock exchange. Zain said last year it was considering a share sale of its international unit on the LSE and would also consider transatlantic operator NYSE Euronext. Al Barrak also said Zain wanted to sell shares in its Bahrain operations in June. “We are expecting in June … we have to sell 20pc of the company’s (shares),” he said. Analysts have said Zain, which is listed in Kuwait, might become the biggest stock on the Manama exchange. Last year, Zain moved its international unit to Bahrain. Zain is expanding abroad as it prepares to face more competition in Kuwait, where Saudi Telecom is to set up the third mobile phone firm later this year.