Vodafone Asked to Delay Qatar Stock Market Listing

Vodafone is expected to delay the planned stock market floatation of its Qatar subsidiary - citing the current economic problems with the financial markets. The company said that it did not get listing approval from the Qatar Financial Markets Authority (QFMA).

A Vodafone Qatar official told The Peninsula, "We had prepared several dates and presented them to the QFMA. However, due to the market conditions at the time, the QFMA did not approve the proposed dates and requested Vodafone Qatar propose a revised timetable."

However, the terms of the license from the telecoms regulator requires that the Vodafone backed consortium floats a share of the firm onto the stock market by November 30th. If the stock market refuses to permit a listing, then the regulator may be required to amend the terms of the mobile and landline licenses.

Following the floatation, 40% of the company will be listed on the stock exchange with 15% to be sold to Governmental/Qatari Institutional Shareholder and the Vodafone/Qatar Foundation Consortium holding the remaining 45%.

Officials at the QFMA, Vodafone or the regulator were not immediately available for comment.

Earlier this year Vodafone and Qatar Foundation Consortium was granted the country's second mobile operator license for a payment of US$2.12 billion. Mobile service under that license is expected to be launched on or before 1st March 2009, and the second Fixed Telecom License is expected to be granted before the end of 2008 with services being launched in 2009.

Qatar Telecom is the incumbent monopoly operator in the country. According to figures from the Mobile World, the company ended the first half of this year with 1.4 million customers -  which represents a population penetration level of 150%. This is boosted by a high number of foreign workers though.

On the web: The Peninsula - Mobile World

Posted to the site on 20th October 2008