Hi Qbas!
The only better axe I found was near the end of the game. I think it is randomly found, so there is no specific place you can get it. It is the "Axe Of Runes And Stones". It does 7-16 points of damage and has +1 enchant and +1 To Hit. It's not really that great compared to some of the other "Special Weapons" in the game. The game leans more favorably toward swordsmen than any other weapon user.
Mark