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Offering Highlights
• The shares will be listed on the Dubai International Financial Exchange ("DIFX"). It is expected that listing on the DIFX will become effective and trading will commence on or about 8 July 2008. Upon listing, Damas is expected to be the first retailer to be listed on the DIFX.
• The shares will be offered to Middle East and international institutional investors outside the US pursuant to Regulation S.
• The Offer comprises 270,583,370 million ordinary shares and represents 28% of the enlarged issued share capital of the Company. The Company has granted to the Joint Global Coordinators (as defined below) an option to purchase within 30 days from the Listing Date, up to an additional 40,587,506 shares at the Offer Price, representing up to 15% of the total number of shares in the Offer, solely to cover over-allotments or short positions resulting from stabilisation transactions, if any, in the Offer (the "Over-allotment Option"). If the Over-allotment Option is exercised in full, the Offer will amount to 311,170,876 shares.
• 86.4% of the Offer (not including the shares in the Over-allotment Option) will be newly issued shares, the remaining 13.6% are secondary shares being sold by Amwal Al Khaleej Commercial Investment Co. The founding family of Damas will not be selling any shares in the IPO. The lock-up period for all current and selling shareholders will be 360 days and the lock-up period for the Company will be 180 days.
• Damas intends to use the net proceeds it receives pursuant to the Offer primarily to expand its store network. The proceeds will also be used to; fund selective acquisitions, investments and alliances that complement the Damas brand; and further vertical integration through investment in manufacturing operations, for the purpose of allowing the Company to capture an increasing share of margins in the manufacturing process. In addition the proceeds will also be used to restructure a portion of the Company's existing debt as well as for other corporate purposes.
• Credit Suisse Securities (Europe) Ltd and HSBC Bank plc are acting as Joint Global Coordinators and Joint Bookrunners on the transaction (the "Joint Global Coordinators").
• The UAE, where Damas is a leading player, is one of the most important jewellery markets in the world. The Company is well positioned to benefit from high levels of growth, economic strength and prosperity across the region.
Commenting on the announcement, Tawfique Abdullah, Chairman, Damas, said:
"Listing Damas represents a natural next step as we look to develop our business in both new and established markets. Damas is a business with a well respected brand, operations in some of the fastest-growing, emerging economies and a long and successful track record. We look forward to welcoming new shareholders who wish to participate in our Company's exciting future."
Tawhid Abdullah, Chief Executive Officer and Managing Director, Damas said: "This is an important time for Damas as we look to capitalise on opportunities to further expand our operations given the strong regional economic growth in areas such as the GCC, North Africa and South Asia and the growing demand for luxury and lifestyle products as personal incomes rise. At the same time we plan to increase sales densities, improve manufacturing processes and further develop our own brands as well as look for selective acquisitions, investments and alliances."
Posted by Anne-Birte Stensgaard, Senior News Editor
