Daman completes major capital hike
Dubai, June 24, 2012
Daman Investments, a leading UAE-based regional investment management company, said it has successfully completed a capital increase through a private placement with an investment of Dh99.9 million ($27.1 million).
Daman said the company move comes in line with its future plans culminating with an initial public offering (IPO).
All necessary regulatory approvals were obtained in May 2012 to officially conclude the capital increase, said the UAE company in a statement.
Based on a subscription share value of Dh170 per share, the addition of capital to Daman Investments signifies a 100 per cent fully subscribed round and sees the total number of issued shares rise from 2 million to 2.58 million with an 588,235 shares issued in this phase of fund raising, said a senior official.
The new share issuance represents 22.7 per cent of the combined total capital base of the company, and values the company at approximately Dh440 million. The new shares were issued at a premium of Dh70 (70 per cent) above their nominal value of Dh100 per share.
CEO Shehab Gargash said 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.
'The success of the capital hike 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,' he observed.
'Daman Investments continues to eye launching a future Initial Public Offering based on improved market conditions,' he added.
According to Gargash, 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,” he added.-TradeArabia News Service