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The Damas group operates in 18 countries, with 438 stores around the world as at 31 December 2007, and has an extensive retail network with stores primarily located in the Middle East, South Asia, Europe and North Africa. Damas is the leading jewellery retailer by number of stores in both the UAE and GCC region as a whole, with 212 stores and 338 stores respectively.
Offer Highlights
1. The shares will be listed on the 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.
2. The base offering comprises 270,583,370 ordinary shares. The Company has also granted Credit Suisse Securities (Europe) Ltd and HSBC Bank plc, the Joint Global Coordinators, an option to purchase between them within 30 days from the date of listing, up to an additional 40,587,506 shares at the Offer Price, representing up to 15% of the total number of shares in the IPO, solely to cover over-allotments or short positions resulting from stabilisation transactions, if any, in the IPO (the Over-allotment Option).
3. Excluding the proceeds, if any, resulting from the exercise of the Over-allotment Option, gross proceeds from the IPO will be approximately $270.6m.
4. The market capitalisation of the Company following the base offering is expected to be $968.6m, based on the Offer Price and the number of shares in issue after the IPO.
5. 86.4% of the IPO (not including the shares in the Over-allotment Option) will be newly issued shares. The remaining 13.6% of shares to be sold in the IPO 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.
6. Damas intends to use the net proceeds from the IPO 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 for further vertical integration through investment in manufacturing operations, to allow 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 Companyˇ¦s existing debt as well as for other corporate purposes.
7. 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).
Commenting Tawfique Abdullah, Chairman, Damas, said:
"We have seen a strong response to the offer and are pleased to have secured support for our investment proposition from such a wide range of respected institutions both in the Gulf and in Europe. We look forward to working closely with our new institutional shareholders and welcoming eventual retail shareholders who will be able to trade Damasˇ shares once we are listed."
Tawhid Abdullah, Chief Executive Officer and Managing Director, Damas said:
"Our core region is experiencing dynamic growth and our business is extremely well-placed to benefit from this economic strength. The introduction of new capital will ensure we can accelerate our growth plans, be it through organic store openings, investing in manufacturing operations or selective acquisitions. This is an exciting new chapter in our long history as we look to continue our record of strong growth as a public company."
PK Dutta, Chief Financial Offer, Damas commented:
"We are delighted by the interest international shareholders have placed in Damas. We will work hard as a public company to build their confidence by applying best practice governance, disclosure and investor communication and delivering long-term shareholder value."
Posted by Siba Sami Ammari
