Daman Plans Dubai Initial Public Offering in First Quarter

Daman Investments PSC plans to sell 55 percent of its equity in an initial public offering in the first quarter, according to Chairman Shehab Gargash.

The Dubai-based fund manager and brokerage hired Emirates Investment Bank PJSC as the adviser and manager of the IPO, and plans to list its shares on the Dubai Financial Market, Gargash said at a news conference in Dubai today. Daman will sell new shares in the public sale and none of its existing shareholders will exit through the offer, which still awaits regulatory approval, he said.

Companies in Dubai are considering IPOs as Dubai’s benchmark index is poised to become the world’s second-best performing gauge in dollar terms for a second consecutive year. Marka PJSC ended the DFM’s five-year IPO drought with a sale in April and Emaar Malls Group PJSC raised $1.6 billion in September. A 1.38 billion-dirham ($376 million) share sale of Amanat Holdings closes tomorrow.

“Now is the right time for an IPO,” Gargash said. “You may have one bad month or so but the market is on an upward trend.”

Funds raised from the offering will be used to expand Daman’s existing business as well as invest in private equity deals in the United Arab Emirates and in the Middle East, he said. There’s been no decision yet on whether to offer shares at a fixed price or through a book-building process, Gargash said.

Daman has interests spanning asset management, brokerage, private equity and financial advisory services, Gargash said.

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