Axiom to float 35% stake on Nasdaq Dubai

UAE retailer Axiom Telecom plans to list a 35-per cent stake on the Nasdaq Dubai market, in the first initial public offering (IPO) from the Gulf state in two years, and use proceeds partly to repay its exisiting bank debt, it said on Wednesday.

Axiom, which is 40 per cent owned by a unit of conglomerate of Dubai Holding, said it will offer new shares while current shareholders will also sell stakes in the IPO sale which is being run through a book-building process.

The listed firm, Axiom Limited, will be the holding company for Axiom Telecom which is 53-per cent owned by Chief Executive Faisal Al Bannai. The remaining seven per cent is held by Al Zarouni Enterprises.

The offering is expected to be complete by the end of 2010, said Axiom, which had revenues of Dh3 billion ($816.8m) in the first half of the year.

In a statement, Axiom, which employs more than 1,500 people, said it 2009 revenues stood at Dh5bn.

The Dubai-based mobile phone distributor has been eyeing a public offering since at least 2005.

In 2007, its chief executive said the firm wanted to float shares by 2010.

Tecom Investments, part of Dubai Holding Commercial Operations Group (DHCOG), owns 40 per cent of Axiom. DHCOG has interests in several telecoms firms, including a 19.5 per cent stake in telecom provider Emirates Integrated Telecommunications Co.

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