Dubai: Investment management firm Daman Investments said on Monday it plans to list on the Dubai Financial Market in the first quarter of 2015 and use the proceeds to scale up existing operations and pursue investment opportunities.
The company, which is into brokerage business, private equity, corporate advisory, and venture capital, plans to sell new shares equal to 55 per cent of the stake, but none of the existing shareholders plan to exit through the offering.
“The company will continue to look at investment opportunities and continue to work. We think this space is going to get more interesting, busier and broader, as the UAE is taking a more prominent position within the region and the wider world,” said Shehab M. Gargash, chairman and founder, of Daman Investments.
The Dubai Financial Market General Index has gained 38.91 per cent so far in the year, making it the biggest gainer in the GCC region. The Abu Dhabi Securities Market General Index gained a little over 19 per cent.
“The market will have a strong reception towards the issue, given the franchise name the company has built for itself over the years and the solid management team, and the track record,” said Husam Kutaifan, Managing Director of Investment Banking at Emirates Investment Bank, which will be be the lead manager of the issue.
The company was founded in 1998 by a group of UAE and GCC investors. The company declined to give any details on its revenues or profits. The company is yet to decide on whether to raise the money through a book-building process or a fixed price basis.
The UAE markets fell 10 per cent last month amid concern that a global slowdown will negate the benefits of the Federal Reserve keeping interest rates near zero for longer, and Daman feels that burgeoning appetite for IPOs would help them.
“We may hit a bad month when we go public, but the general trend is positive for the appetite of the markets for a public offering. The micro situation is all that we are hostage to,” said Gargash.
Healthy pipeline of IPOs
“We are seeing a very healthy pipeline of companies going to market. We expect more of the same within the coming months and years. This will broaden, deepen the markets for investors for the old and new investors,” Gargash said.
Marka’s IPO was the first listing after a long hiatus, followed by Emaar Malls Group. Subscription to Amanat’s IPO, which has been already oversubscribed, will end on Tuesday.
The DFM expects at least two more listings this year, while the ADX expects 2-3 listings before the end of the year.
“We are seeing broader appeal of the UAE markets among foreign investors, both individual and institutional. And we feel broadening choice of listed companies will play a positive role in furthering this trend,” Gargash added.
The UAE will become an even more attractive destination for capital as it obtains increased exposure and credibility in international markets, he added.
