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23 May 2024

NanoDynamics pulls out of IPO on DIFX

By Safura Rahimi

The first US-based company to list on the Dubai International Financial Exchange on Sunday pulled the plug on its listing after one day.


NanoDynamics launched a request to voluntarily de-list its ordinary shares from the official list of securities, adding that “special circumstances have recently arisen which warrant these steps”.


The move by the alternative energy firm was announced in an official request to the DIFX on Friday.


“There have been significant changes to the placing agreement as described in the company’s final prospectus dated February 13, 2008, from that submitted as part of its listing application to the DIFX,” NanoDynamics said in its request.


According to Daman Investments, co-lead manager on the IPO, there are no plans for an IPO on DIFX by NanoDynamics at this time.


“It’s premature [but] that does not mean they will not do it, it’s simply not their focus at the moment,” a spokesperson for the investment firm told Emirates Business, without providing details on the changes to the placing agreement.


NanoDynamics made the withdrawal request in light of discussions with DFSA and DIFX, which has since agreed to de-list the firm’s ordinary shares and not to commence trading, according to the bourse statement.


The firm said it will refund subscriptions to its investors, the statement said.


“It was Nanodynamics’ decision entirely and we as the local party and the co-lead have to respect that decision,” the Daman spokes-person said. “It is also not a contentious de-listing – DIFX and DFSA completely approved it – and there is no penalty or anything of the kind,” the person added.


There is speculation as to whether the nanotechnology company would plan a Dubai listing in the future. Daman’s US strategic partner Global Crown Capital said earlier this month NanoDynamics’ presence in countries like China and India makes listing on the Dubai bourse an important move.


The company, which also pulled out of a planned IPO on Nasdaq last November, had been due to start trading in Dubai in the week of February 11.


The issue was set for 9.1 million shares, which would have given the new owners approximately one-third of the company, CEO of Daman Investments Shehab Gargash said at the IPO launch earlier this month.


The decision to de-list follows a similar move by Oger Telecom, which abruptly withdrew plans in November 2006 to list its shares on the DIFX, citing weak and volatile market conditions.