Daman Investments PSC, one of the leading UAE-based regional investment management companies, has announced the successful completion of a capital increase through a private placement with an investment of AED 99,999,950 as the company moves forward with future plans culminating with an Initial Public Offering (IPO).
Based on a subscription share value of AED 170 per share, the addition of capital to Daman Investments signifies a 100% fully subscribed round and sees the total number of issued shares rise from 2,000,000 to 2,588,235, with 588,235 additional shares issued in this phase of fund raising. All necessary regulatory approvals were obtained in May 2012 to officially conclude the capital increase.
Commenting on the announcement, Mr. Shehab Gargash, Chief Executive Officer of Daman Investments PSC said, “The success of the capital raise at a premium is a very clear indicator of the value of Daman, and the robust nature of the UAE market, in the midst of one of the most severe crises the world has ever seen. Daman Investments continues to eye launching a future Initial Public Offering based on improved market conditions.”
“The accomplishment of a successful IPO to be listed on one of the markets in the UAE is the clear and focused objective of Daman’s medium-term strategy. We are fully intent on bringing to fruition our ambition for Daman Investments to emerge as a leading Arab financial management firm, growing within the region’s rapidly evolving financial services industry,” Mr. Gargash further commented.
The new share issuance represents 22.7% of the combined total capital base of the company, and values the company at approximately AED 440 million. The new shares were issued at a premium of AED 70 (70%) above their nominal value of AED 100 per share.
For the first time since the company’s establishment in 1998, Daman Investments has opened its doors to new qualified investors following the announcement of its strategy to broaden the shareholder base of the company. Daman’s approach has been developed in anticipation of new opportunities in the wake of the global credit crisis and has been designed to optimize the traction of the company’s efficient operations as the UAE returns to its positive stance and leadership role in the region’s economic environment.
Daman Investments’ move to increase capitalization is in line with its commitment to create outstanding value for its investors by energizing the operations of its subsidiaries whose sustained growth contributes tremendously to the company’s overall performance and to the growth of its investors’ shareholding value.