UNITED ARAB EMIRATES
Axiom Telecom backs out from IPO
gulfpics
Axiom’s IPO would have been UAE’s first in two years.
Dubai-based Axiom Telecom has pulled its planned initial public offering two days before the listing, citing “widespread concerns about market conditions and liquidity”. In what would have been the UAE’s first IPO in two years, the board
withdrew the offer “to protect” current and future shareholders. There were sufficient orders to fully cover the IPO book, primarily subscribed by institutional investors in Europe and the US. Analysts, however, believe Axiom’s business model is not an ideal
market opener. While IPOs globally are fuelled by expansion plans, Axiom plans to use most of the funds to pay debts. In a market dominated by retail investors, it excluded individuals from subscribing. As a retailer, it also does not market any proprietary technology.
SPOTLIGHT
Ex-Shell boss revamps energy policy After joining the Dubai Supreme Council of Energy in May, Nejib Zaafrani has helped expedite the emirate’s long-needed strategy revamp. Since his appointment as the secretary general and CEO, Dubai has decided to meet 40 per cent of its needs from nuclear and clean coal by 2030. It also increased
its water and electricity tariffs by 15 per cent and introduced additional fuel surcharge charges.
Zaafrani previously worked as president at Phoenix International Consultancy, chairman and managing director at Shell Abu Dhabi and business development vice president at SIEP Middle East. He has a Master in Physics from Université Denis Diderot (Paris VII) and enjoys tennis, swimming and reading.
INNUMBERS
30
Dubai’s rank in the list of 32 most expensive cities in the world, according to PriceRunner, a price comparison site.
Dhs1 trn Estimated UAE GDP in 2010, according to economy minister Sultan Al Mansouri.
Emirates stake sale considered
Dubai’s government is considering selling some of its most prized assets, including a stake in Emirates Airline, the director general of the Dubai Ruler’s Court, said. “The possibility of offering a stake in Emirates Airlines to the public is always there and is being studied and considered,” Mohammed Ibrahim Al Shaibani said. However, Dubai is reluctant to sell assets at the current time given the weak market conditions.
ADCB sues Credit Suisse, S&P Abu Dhabi Commercial Bank said it is suing Credit Suisse and credit rating agency Standard & Poor’s, alleging it was misled over a 2007 investment that went sour. The bank alleges that Credit Suisse failed to disclose conflicts of interest and provided misleading information when packaging and selling structured investment vehicles, known as Farmington. It also alleged S&P made inaccurate assessments.
UAE not to join monetary union
The UAE central bank governor Sultan bin Nasser Al Suwaidi said the country does not plan to join the Gulf monetary union at least for the time being. “We don’t think it is the proper time to discuss the UAE going back to the project of the single GCC currency,” he said, adding that pegging the dirham to US dollar is still the best choice for the Gulf oil producing country.
January 2011 gulfbusiness
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