Sunday, Nov 21, 2010
DUBAI (Zawya Dow Jones)--Axiom Telecom, a Dubai-based mobile phone distributor, Sunday set the price range for its initial public offering at between $0.80 and $1.15 a share, valuing the company at up to $1.09 billion.
Axiom, in an emailed statement, said its 35% share sale will run from Sunday until round Dec. 3. It's the first IPO in the United Arab Emirates in over two years.
"This price range announcement marks the beginning of the bookbuilding period and is a key stage in our IPO process. We look forward to starting our roadshow today, meeting local, regional and international institutional investors and hope to welcome them into our shareholder base at this exciting phase of the company's growth cycle," said Axiom's Chief Executive Faisal Al Bannai.
Axiom said the proceeds from the IPO will be used to further strengthen the company's balance sheet to support future growth requirements and to reduce reliance on existing borrowing lines. About $100 million will be used towards repaying a part of the current portion of Axiom Telecom's existing bank debt, it added.
As it stands, Axiom is 53% owned by Al Bannai Investment LLC, 40% owned by a subsidiary of TECOM, a division of Dubai Holding, and 7% owned by Al Zarouni Enterprises LLC.
-By Mirna Sleiman, Dow Jones Newswires; +9714 446-1698; mirna.sleiman@dowjones.com
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
21-11-10 0725GMT
