Axiom Telecom cancels IPO
Axiom Telecom cites "widespread concerns about liquidity" as reason for cancellation.
Dubai-based mobile phone retailer, Axiom Telecom, has cancelled its planned IPO on NASDAQ Dubai.
The company said in a statement that it had aborted the IPO of 35% of its shares owing to "widespread concerns about market conditions and liquidity".
"The board has therefore decided to withdraw the offer at this juncture to protect current and future shareholders of Axiom," the firm said.
Despite cancelling the IPO, Axiom claimed that it had received "sufficient orders to fully cover the IPO book at the price range".
The company added that there had been "high demand from high quality international investors in Europe and the US."
The IPO, which was only open to institutional investors, could have netted the company's three main shareholders, Al Bannai Investments, Dubai Holding, and Al Zarouni Enterprises, more than $1 billion, had the upper valuation been realised.
Axiom Telecom had planned to raise between $760 million and $1.093 billion from the IPO, with the price range for shares set at $0.80 to $1.15.
The IPO would have been the first UAE listing on NASDAQ Dubai in 18 months, and analysts have said that the cancellation could deter other companies in the region from considering listing.
Axiom Telecom is 53% owned by Al Bannai Investment LLC, 40% owned by Dubai Holding, and 7% owned by Al Zarouni Enterprises.