Dubai: Axiom Limited, a Dubai International Financial Centre-registered entity, yesterday announced its decision to cancel the company's initial public offering (IPO) of shares and listing on Nasdaq Dubai.
"While there were sufficient orders to fully cover the IPO book at the price range, primarily due to demand from high quality international investors in Europe and the US, there were widespread concerns about market conditions and liquidity," the company said in an e-mailed statement.
"The board has therefore decided to withdraw the offer at this juncture to protect current and future shareholders of Axiom."
Axiom Telecom was established in 1997 by Faisal Al Bannai, its CEO, and is today one of the leading distributors of mobile telecommunications handsets, accessories and telecom services in the Middle East, with operations in the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar, employing 1,500 people and more than 3,300 points of sale across the Middle East.
Future options
In the first half of this year, Axiom Telecom distributed approximately 67 per cent (by value) of all mobile handsets sold in the UAE and approximately 16 per cent (by value) of all mobile handsets sold in Saudi Arabia.
Axiom Telecom sold approximately 4.1 million mobile handsets in the Middle East in 2009 and approximately 2.2 million mobile handsets in the Middle East in the first half of 2010.
Al Bannai said: "We have taken the difficult decision to cancel the IPO despite strong demand from international investors, with many subscribing at the top of the price range due to their positive long-term view on Axiom. We remain extremely confident in the strengths of Axiom's business, growth prospects and suitability as a public company and will be re-evaluating our options in the future."
Axiom Telecom generated revenues of Dh5 billion last year, while for the first half of this year, it generated Dh3 billion, a 23 per cent growth year on year.
