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Daman raises Dh99.99m through private placement

Daman Investments on Sunday announced the successful completion of a capital increase through a private placement with an investment of Dh99.99 million as the company moves forward with future plans culminating with an Initial Public Offering , or IPO.

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 2,000,000 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.

“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,” Shehab Gargash, chief executive officer of Daman Investments, said.

“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,” Gargash commented.

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.

abdulbasit@khaleejtimes.com