Axiom looks to be listed on NASDAQ Dubai by year-end

Axiom Limited has announced its intention to undertake an initial public offering (IPO) of up to 35 per cent of its shares and a listing on NASDAQ Dubai.

Faisal Al Bannai, founder and CEO of Axiom Telecom

The global offering is expected to complete by the end of 2010, subject to prevailing market conditions and regulatory approval.

At the time of the IPO, Axiom Limited will be the holding company of Axiom Telecom LLC (Axiom Telecom). Axiom Limited was recently established in the Dubai International Financial Centre for the purposes of the IPO and the listing on NASDAQ Dubai. At the time of the IPO, Axiom Limited will be the holding company of Axiom Telecom, which will be its only asset. Axiom Limited is currently 53 per cent owned by Al Bannai Investment LLC, 40 per cent owned by a subsidiary of TECOM (a member of Dubai Holding) and seven per cent owned by Al Zarouni Enterprises LLC.

Axiom Telecom is one of the Middle East’s leading multi-brand, multi-channel distributor of mobile telecommunications handsets, accessories and services, with operations in the UAE, Saudi Arabia, Bahrain, Kuwait and Qatar , as well as strategic interests in companies operating in India and South Africa.

According to Axiom Telecom, in the first half of 2010, the company 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.

To complement growth in its core markets, in 2007 and 2008 Axiom Telecom made investments in a joint venture in India with one of the largest retailers. In 2008, the company also took a 40 per cent stake in Allied International Investments Limited, a company engaged in the macro-distribution and after-sales repair and service of various brands of mobile handsets in South Africa.

For the year ended December 31, 2009, Axiom Telecom generated revenues of AED 5 billion (US$1.36 billion), while for the first half of 2010, the company generated revenues of AED 3 billion.

The Axiom group has more than 1,500 employees and operates more than 3,300 points of sale across the Middle East.

The IPO will comprise a primary offering of new shares by Axiom Limited and an offering of existing shares by Axiom Limited’s current shareholders.

It is expected that Axiom Limited will be the first company in the UAE to carry out an IPO for at least eighteen months.