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Damas seeks to raise Dh1.3b from initial share sale for expansion
Damas yesterday said it will raise between $312 to $355 million (Dh1.3 billion) to fund expansion by floating on the Dubai International Financial Exchange (DIFX) next month.
- By Saifur Rahman, Business Editor
- Published: 14:08 June 18, 2008
Dubai: Damas yesterday said it will raise between $312 to $355 million (Dh1.3 billion) to fund expansion by floating on the Dubai International Financial Exchange (DIFX) next month.
The jewellery retailer yesterday launched a roadshow to promote subscription of 270.58 million ordinary shares, representing 28 per cent of the enlarged issued share capital, with an initial offer price range of $1.00 to $ 1.14 per share, the company said in an e-mailed statement.
The company, roughly 71 per cent owned by Tawfiq Abdullah, Tawhid Abdullah and Tamzid Abdullah, is the first private sector gold and jewellery retailer to go public in the UAE. Credit Suisse Securities (Europe) Ltd and HSBC Bank are acting as joint global co-ordinators and joint bookrunners on the transaction.
"We want to set up 100 stores per year for the next five years, more than doubling the number from 438 stores in operations now," Tawhid Abdullah, Damas managing director and chief executive, told Gulf News.
Damas operates in 18 countries with 438 stores around the world.
For the three-month period ended March 31, 2008, the company had revenues of Dh1.12 billion, with earnings before interest tax debt and amortisation (EBITDA) reaching Dh106.7 million and net profit of Dh69.7 million.
As at March 31, the company's assets totalled Dh5.06 billion. For the year ended December 31, 2007, Damas had a net profit of Dh209.1 million.
Damas expects trading to begin on or around July 8. The shares will be offered to Middle East and international institutional investors outside the US, pursuant to regulations.
The company has granted the joint global co-ordinators an option to purchase up to an additional 40.58 million shares at the offer price within 30 days from the listing date. This represents up to 15 per cent of the total shares in the offer and aims solely to cover over-allotments or short positions resulting from stabilisation transactions, if any, in the offer (the over-allotment option). If the over-allotment option is exercised in full, the offer will amount to 311.17 million shares.
About 86.4 per cent of the offer will be newly issued shares. The remaining are secondary shares being sold by Amwal Al Khaleej Commercial Investment Co.
"The founding family of Damas will not be selling any shares in the IPO. The lock-in period for all current and selling shareholders will be 360 days and the lock-in period for the company will be 180 days," Damas said.
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