Daman Investments to list 55% stake in Dubai

Dubai-based Daman Investments on Monday announced plan to float 55 per cent of its shares on the Dubai Financial Market in the first quarter of 2015.

Addressing a press conference in Dubai, Shehab Gargash, Chairman of Daman Investments, said the company is awaiting regulatory approval to go public and list on the Dubai bourse, and expects approval to come in this quarter.

With the recovery in the UAE economy and improving sentiment in the local market, the IPO market in the emirate is gaining momentum.

Recently, Emaar Malls and Amanat Holding have successfully raised funds through the public offerings in the UAE.

According to a PricewaterhouseCoopers report released last month, the UAE led IPO activity in the GCC during the third quarter of 2014. Though the number of IPOs was lower than the previous quarter, the total value of the two IPOs – Emaar Malls and Amanat – was $1.6 billion, 78 per cent higher in total value compared to Q2 2014.

Daman’s Gargash said the evaluation process of the company’s financials is underway and the exact value of the initial public offering (IPO) will be announced in due course.

Replying to an Emirates 24l7 question, Gargash said decision regarding the pricing and selling of shares to both retail investors and financial institutions will also be taken once the evaluation process of the company’s financials is complete.

“Decision regarding selling shares to both retail investors and financial institutions has not been taken yet but it makes sense to sell shares to both of them,” he said.

The company had first announced its intention to go public in 2009 but now it feels that the time has come to list on the local market.

Gargash said none of its existing shareholders – mainly private investors – are exiting through the offering as there is a lock-in period of six months for them.

The proceeds from the IPO will be used for opportunities arising in the UAE and part of it will be used for internal system, he said, adding that “funds raised through the IPO will be used to scale up our existing business and invest in various opportunities in the UAE and the wider region.”

Gargash said the company witnessed interest from the private investors with regard to its IPO during the recent roadshow with the Dubai Financial Market in New York.

Emirates Investment Bank has been appointed financial adviser and lead manager while White & Case is acting as a legal adviser for the Daman IPO.

 

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