Dubai-based mobile phone distributor, Axiom Telecom, has signed an agreement with Mannai Corporation to sell a 35% stake in the company.
Faisal Al Bannai, CEO of Axiom Telecom, said that the deal demonstrates the trust that its shareholders place in the strength of the company, even after turning down a fully subscribed IPO last year due to price.
“We were able to demonstrate strong results in 2011 despite not raising the capital in 2010. This additionally gave us the ability to attract the right investors and sell shares at a price higher than the IPO,” he said.
Bannai added that the capital increase will aid Axiom Telecom’s plans to further growth and expansion in the region and beyond.
Earlier, in December 2010, Axiom Telecom cancelled its planned IPO on Nasdaq Dubai stating the reason to be "widespread concerns about market conditions and liquidity".
Axiom Telecom is a distributor of mobile telecommunications handsets, accessories and telecom services in the Middle East with operations in the UAE, KSA, Bahrain, Kuwait and Qatar.
Axiom Telecom has partnerships with UAE’s Du and Mobily in Saudi Arabia.