Dubai: Axiom Limited, a Dubai International Financial Centre (DIFC) registered entity, will sell up to 35 per cent of its shares in an initial public offering (IPO) and subsequent listing on Nasdaq Dubai.
Axiom is the holding company of Axiom Telecom, a regional multi-brand distributor of mobile telecommunications handsets, accessories and services with operations in the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar. Axiom Telecom also has strategic interests in companies operating in India and South Africa.
The IPO will include a primary offering of new shares by Axiom Limited and an offering of existing shares by current shareholders.
Faisal Al Bannai, Founder and Chief Executive Officer of Axiom, said in a statement: "We see the IPO as a natural next step for Axiom. We have made great strides as a company since we first launched operations in 1997. Today we are the leading distributor of mobile handsets, accessories and telecom services in the Middle East, an achievement of which we are extremely proud".
The price of the securities will be denominated in US dollars and the sale price established through a book-building process. Deutsche Bank is acting as sole global coordinator, joint book runner and the company’s sponsor in connection with its listing on Nasdaq Dubai. Citigroup Global Markets and Shuaa Capital are also acting as joint book runners for the global offering.
Net proceeds from the primary offering are intended to be used towards repaying a portion of Axiom Telecom’s existing bank debt, as well as for other general corporate purposes, the company said.
The global offering is expected to be complete by the end of 2010, subject to prevailing market conditions and regulatory approval, it said.
Al Bannai established Axiom Telecom in 1997. The company has two main business segments: the sale and service of mobile handsets and accessories across the Middle East and the sale of mobile telecommunications services through key partnerships with telecommunications network operators, including du in the UAE and Mobily in Saudi Arabia.
Axiom Limited was established in the DIFC for the purposes of the IPO and the listing on Nasdaq Dubai. It is 53 per cent owned by Al Bannai Investment, 40 per cent by a subsidiary of TECOM (a member of Dubai Holding) and seven per cent by Al Zarouni Enterprises.
