Damas plans IPO in two months

Dubai: Damas, a Dubai-based gold and jewellery retailer, is planning to go public in two months, the company's top official said.

Tawheed Abdullah, chairman of the Gold and Jewellery Group and executive chairman of Damas, told Gulf News that Damas had decided to study the conversion through an initial public offering (IPO).

The UAE Cabinet recently discussed a proposal by the Ministry of Economy to allow founders to keep up to 70 per cent of their family-owned company's capital.

"Damas was one of the first family companies in the UAE to consider converting into a public joint-stock company.

"The decision was delayed until there was legislation to guarantee the achievement of the company's targets and future expansions," said Abdullah.

He said allowing up to 30 per cent of shares for public transcription was a step in the right direction, which reassures owners.

"There were [concerns] about founders' shares, but this has changed for the better now," he said.

He said many family companies would now reconsider their status in line with the ministry's latest suggestion.