Palestine Telecommunications Company (PalTel) stock begins trading on the Abu Dhabi Securities Market today December 26, 2005. PalTel, which is the national telecommunications operator in Palestine, is listing 30% of its stock on ADSM.
This listing comes as a result of an agreement signed in November between the Abu Dhabi Securities Market and the Palestinian Securities Market.
Speaking at the Abu Dhabi Securities Market on his firm's stock debut, Dr Abdul Malek Al Jaber, Chief Executive Officer of PalTel commented:
"By listing on the ADSM PalTel will open the door to its plans to become a truly pan-regional company, which adheres to the highest standards of transparency and corporate governance. Having proved itself in its home market of Palestine, PalTel now offers ownership to investors from across the Middle East. PalTel will drive forward its business across the region, and this listing represents an opportunity for a broad investor base to join us in this journey."
The stock will open at a market price the same as its price on the Palestinian Stock Market - around AED 75 (US18).
"The regional telecommunications industry is ripe for an innovative and proven local player to enter the market - and that is what PalTel will be able to do with this secondary flotation. These are exciting times for the industry and for the region, and we fully intend to take advantage," he continued.
This flotation is also expected to attract investment attention towards the Palestinian economy and encourage other Palestinian firms to list their shares in markets outside Palestine.
PalTel's market capitalization currently exceeds AED 7.2 billion (USD 2 billion). Its 2005 profits are expected to exceed USD 100 million, doubling 2004 profits.