State-owned firms raring to go public

 

By Qassem Salman

 

Azzaman, August 21, 2005

 

The Ministry of Industry has set up a committee to register eight major state-owned companies on the Baghdad Stock Exchange.

 

A statement faxed to the newspaper did not say when these firms will go public but stressed that the move will not be initiated until the ministry works out guarantees that tens of thousands of employees that will keep their jobs.

 

The committee is currently evaluating these companies and would advise the ministry on the price and number of shares that will be available to the public at the Baghdad exchange.

 

Taha Ismael, who heads a central commission charged with privatizing of state-owned companies, said the move will cover four cement factories, a pharmaceutical firm, and three construction enterprises.

 

“Employees will be given share options which they can buy and pay for later,” he said.

 

The state owns the bulk of industrial firms in Iraq but many of them have failed to compete in the free-market environment in place since the 2003 U.S. invasion.

 

Power outages, violence and insecurity have added to the industry’s woes with thousands of firms still idle.

 

Baghdad Stock Exchange is functioning despite the upsurge in violence and brisk business is reported during its two sessions a week.

 

Promises to upgrade the exchange by supplying it with electronic boards and advanced computers have not materialized.