Axiom Telecom reveals price range for IPO

Axiom Telecom plans to use proceeds for long term growth, including possible MVNO launches

Tags: IPOUnited Arab Emirates
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Axiom Telecom reveals price range for IPO Faisal Al Bannai, CEO, Axiom Telecom, said part of the funds raised from the IPO will be invested in the company.
By  Roger Field Published  November 21, 2010

UAE-based mobile phone distributor and retailer, Axiom Telecom, said today that it plans to raise between $760 million and $1.093 billion from its forthcoming IPO of 35% of its total shares on Nasdaq Dubai, with the price range for shares set at $0.80 to $1.15.

The company confirmed that the IPO will be open only to institutional investors, with retail investors excluded. The book building process will start today and is expected to end on December 3.

The final price of the IPO shares will be announced on December 6, and trading of the shares is expected to start on December 9.

Axiom and its current shareholders, Al Bannai Investment LLC, Tecom, and Al Zarouni Enterprises, plan to offer up to 332.35 million ordinary shares in the IPO, including a minimum of 93 million new shares. The remaining 239.35 million shares will be sold by the existing shareholders pro rata to their shareholdings.

Faisal Al Bannai, CEO, Axiom Telecom, said part of the proceeds of the IPO will be invested in the company to provide a "strong platform for the continued profitable growth" of the business in the region and further afield.

Al Bannai also told CommsMEA that Axiom remains interested in launching MVNOs in the region and that the company is in "advanced discussions" with a number of operators in the region.

"Hopefully there will be some news at the beginning of next year," he said. "We can't confirm anything until it is signed but definitely it is a key part of our strategy going forward.

"For any MVNO all of the key ingredients are there," he added. "We have the brand, the channel. It is now just a matter of completing a commercial contract that can make us press that final button."

Al Bannai added that part of the funds from the IPO could be used to fund Axiom's plans to launch MVNOs in the region.

Axiom is 53% owned by Al Bannai Investment LLC, 40% owned by a subsidiary of Tecom, and 7% owned by Al Zarouni enterprises.

The company has 1,500 employees and is present in the UAE, Saudi Arabia, Bahrain, Qatar, Oman, Kuwait, UK, and India. 

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