Daman Investments, a name well known in the world of management firms, based in the UAE, they are experts in handling investments for various companies. Staying as a private firm for many years, a recent statement made by the chairman Shehab Gargash is about to change that.
Hopefully by next month, the firm will gain the approval to be launched publicly, thus being provided the opportunity to stupendously increase business, especially after the recent inactivity in the IPO market of the UAE. This sad state was due to reduced market in real estates and oil prices, eventually affecting the overall stock exchange.
Gargash assured the importance of his company’s IPO plans. The offers shall look into improving the situation that made business itself depressing, all in due time. Daman Investments took Ramadan and new company laws into consideration when making the decision, though details on this were not expressed.
It is expected that the reasons stemmed to the decline of stock trading during Ramadan and hot months, since it is a time that discourages individual investors from contributing to the market.
This new development is assumed to motivate other firms to go public as well, since the company laws have significantly reduced the amount of share in UAE’s stock listings. Without this change, IPO prices could take advantages of taking more money through bidding, instead of buying and selling from a fixed price range.
Daman had said before that this development will lead to companies selling less at more price, as well as regain the percentage of the share gained through previous methods.
Investors from the UAE as well as the wider Gulf region has supported Daman’s claim since 1998. In June 2012, Daman Investments has sold a 22.7% stake to private investors, which put the company itself at a price of $120 million.
In additional news, the new financial adviser and lead manager for the IPO is the Emirates Investment Bank. The law firm White & Case will also be the new legal adviser. These new changes are expected to make a lot of positive developments, as everyone currently expects.