The cancellation of Axiom Telecom's IPO this week leaves a bitter taste.
To withdraw a market flotation just 48 hours before listing, after months of preparation, raises fundamental questions about markets in the UAE and the regulatory regime that oversees them. With Dubai considering a multibillion-dollar privatisation programme, some urgent concerns have to be addressed.
The official reason given for the cancellation was concern on the part of the company for the state of market sentiment in the region, especially the issue of liquidity. The finger was pointed at NASDAQ Dubai, the market where the stock would have been listed, and which has been bedevilled by liquidity and volume issues since it was launched in 2005.
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