Tourism firm incurs high deficit
The Mosul-based Tourist Village of Mosul Dam has been delisted from the Iraq Stock Exchange (ISX) due to heavy losses. The tourism firm has been making losses throughout 2001 to 2010 and only managed to make a profit in 2007. The deficit has reached 151 per cent of its capital.
Under the Companies Law in Iraq, any company that has losses amounting to 75 per cent of its capital will be delisted from the ISX if it fails to reduce its capital.
As the company has been unable to resolve this issue, the ISX’s board of governors decided to delist the company on 29 October. The move reduces the total number of listed companies on the bourse to 84.
The only other company to have been delisted this year from the ISX and the Iraq Securities Commission (ISC) was Warka Bank for Investment & Development, which also suffered from capital issues and had failed to provide the ISX with its accounts.
“Data and information is key for investment, if you do not give this information, no-one will invest in your company,” says Taha Abdul Salam al-Rubaye, chief executive of the ISX.
Earlier in August, the ISX suspended trading of 23 listed companies for failing to submit annual reports.
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