US-based NanoDynamics cancels Dubai listing

DUBAI, Feb 17 (Reuters) - U.S.-based NanoDynamics, which cancelled a Nasdaq IPO last November, has pulled out of a planned listing in the Middle East, according to a statement on the Dubai International Financial Exchange’s Website.

NanoDynamics -- which makes water filters, fuel cells and other technology for the energy and environmental market -- had been due to start trading in the week of Feb. 11, co-lead manager Daman said on Feb. 4.

“The company has requested the DIFX to voluntarily delist its ordinary shares from the official list of securities of the DIFX,” the Dubai exchange said in a statement dated Feb. 15.

“The company has made this request in light of discussions with the Dubai Financial Services Authority and the DIFX,” the exchange said, without giving details.

NanoDynamics had offered investors 9.1 million shares at $11 per share, Daman managing director Shehab Gargash said earlier this month. The firm would refund subscriptions to investors, the DIFX said.

NanoDynamics withdrew its initial public offering in November after it had planned to list its shares on the Nasdaq Stock Market, citing weak market conditions.

Since then, global stock markets have tumbled on worries about a spreading credit crisis and a possible U.S. recession. The MSCI All-Country World index .MIWD00000PUS is down almost 10 percent so far this year.

The DIFX, in which Nasdaq has agreed to take a 33 percent stake, was set up in Sept. 2005 partly to encourage global firms to list shares regionally.

Dubai, part of the United Arab Emirates, set up the exchange to operate according to international regulatory standards, in a region where bourses fall short of peers in Europe and the United States. (Reporting by Daliah Merzaban; Editing by Lincoln Feast)