The company had planned to roll out 15 plastic-to-diesel refineries that would be based on a licensed process currently only used in Japan. It had signed an exclusive agreement with the Visy group for the supply of waste plastic.
Axiom was originally due to list on October 10, but that was delayed after the government said it would tax its environmentally-friendly diesel product. Yesterday the company decided to put its listing on hold while it considered its options.
The company’s prospectus offered 47 million shares at 80c each, while the IPO, which raised $37.6 million, was oversubscribed.
Axiom now has to refund $37.6 million raised in an initial public offer last month.
"The decision to withdraw the offer is disappointing, but the board of Axiom Energy considers it prudent in light of the uncertainty caused by the action of federal Treasury relating to the company's diesel-from-waste-plastic project," the company said.
From July 1 next year, diesel will be taxed at the full rate of 38.143 cents per litre, which would make the industry unviable in the medium term, said Axiom.
But the decision did not affect Axiom’s other project – producing biodiesel using renewable plant oils, animal fats, and used cooking oils – which receives a grant to offset the 38.143 cents per litre excise duty up to 2011.
It is unclear whether this project will still go ahead. Axiom said it would have discussions next week with Treasury and the Depatment of Heritage and Environment and it might be possible for another government department to offer a subsidy or rebate that offsets the Treasury excise.
