Axiom Ltd, a Dubai based mobile phone retailer, lowered the top end of the price range for its initial public offering, the first IPO in the UAE in almost two years.
Axiom narrowed the range to 80 cents to $1, according to terms of the sale obtained by Bloomberg. It had been selling shares for 80 cents to $1.15 apiece, according to a company statement on November 21. The original offering valued Axiom at $760 million to $1.1 billion.
Companies in the Gulf Cooperation Council countries are joining a surge in emerging market share sales as regional stock markets rebound and companies restructure their debt. Omani mobile phone operator Nawras and Aluminium Bahrain sold shares last month at the bottom of their forecast price ranges.
Calls made to Axiom’s Dubai office outside of business hours were not answered. The stock is scheduled to start trading in Dubai on December 9, the company’s CEO Faisal Al Bannai said on November 21.
According to Al Bannai, Axiom will use some of the proceeds from the IPO to finance growth. At least $100 million will be used to repay part of the company’s bank debt.
Green Crescent Insurance Co, an Abu Dhabi based provider of health insurance products, raised about $37 million in the last UAE IPO in March 2009, data compiled by Bloomberg show.
Managers of Axiom’s IPO, Deutsche Bank AG, Citigroup Inc and Shuaa Capital, may stop taking orders tomorrow, according to the statement on November 21.
The Bloomberg GCC 200 Index has gained 9.2 percent this year, compared with a 13 percent increase for the MSCI Emerging Markets Index and a 9.6 percent advance for the MSCI Asia Pacific Index.
Companies in Asia have raised $162 billion through IPOs this year, the most of any region on record, with emerging market sales accounting for $91.9 billion, according to data compiled by Bloomberg.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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