Averda, the Dubai-based provider of waste-disposal services, is exploring an IPO in Saudi Arabia or the UAE, Bloomberg reported on Thursday citing sources.

The company had earlier held merger talks with US blank-check firm Better World Acquisition Corp., but those discussions have been abandoned, the report said.

The privately-owned business has in the past considered an IPO and sold a 33 percent stake to Bahrain-based private equity firm Growthgate Capital in 2008, it said.

(Writing by Brinda Darasha; editing by Seban Scaria)