Stock DFM Dubai market
The Daman IPO will payout dividends quarterly and will confine itself to new IPOs as well as those stocks listed in the last two years. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Dubai’s Daman Investments has launched a UAE IPO fund for institutional investors and family offices wanting to take up exposure in companies that are going public. The intention is to offer returns higher than those generated by the broader market index.

The fund will invest in the upcoming IPOs and in companies which have been listed over the past two years and ‘not yet reached to their full capital return potential’. Dividends would be paid quarterly.

Recent IPOs are setting aside sizeable tranches for institutional and professional investors, and with more coming through the pipeline, Daman reckons this is the ideal moment to get these investors interested.

“The UAE is also emerging from the global economic downturn faster than most countries across the world,” said Daman. “This combined with lack of IPO opportunities in other global markets is leading to very strong foreign institutional investors’ interest in the regional IPOs.”

According to Shehab Gargash, Chairman at Daman Investments, “Daman Investments has been a pioneer in creating differentiated product offerings that have created long-term value for our clients. One of our proud examples was the launch of the ‘Daman UAE Value Fund’, which was a closed-ended vehicle in 2001 that has generated a return of more than 300 per cent over a period of 5 years.

We are excited to launch the Daman UAE IPO Fund which will give our investors the opportunity to participate in a period of strong capital market activity in the UAE.

- Shehab Gargash, Chairman at Daman Investments