Daman Investments unveils strategy to achieve IPO by 2012

Daman's new strategy has been developed in anticipation of new opportunities in the wake of the global credit crisis and has been designed to optimise the traction of the company's efficient operations as the UAE economy returns to its positive stance which, according to conservative estimates, is expected to begin from late 2010.

When asked why the group would undertake such a program in an as yet unclear market situation, the group Managing Director Mr. Shehab Gargash said: "We have taken a hard look at the markets and are confident that our long term, positive view is justified. We are proceeding to enhance our shareholder base through a studied and measured approach beginning earlier this year and culminating in an IPO by the end of 2012."

This new strategy is aimed at broadening the shareholder base of Daman Investments through inviting investment by new qualified investors for the first time since the Company's establishment in 1998.

The plan is being implemented in several stages over the coming three years through several private rounds culminating in the launch of Daman's IPO.

The Company has already attracted an early strategic investor with investment commitments of Dhs100m and is proceeding to obtain equity investments of an additional Dhs200m in the coming few weeks. The complete three-year exercise is at all times subject to obtaining all necessary regulatory approvals.

Mr. Gargash was queried about the announced IPO and replied:

"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 and all actions taken within the context of the strategic plan are geared towards the realisation of this objective. We are fully intent on bringing to fruition our ambition for Daman Investments to emerge as a leading Arab financial management firm in the wake of the global economic recession, growing within the region's rapidly evolving financial services industry."

Daman's optimism springs from its belief in the UAE economy. The group has confidence that the UAE and regional economies have the potential to bounce back from the slump and continue to progress steadily through to 2012 and beyond.

Key economic indicators are already forecasting a favourable outlook with regard to the UAE economy, as real GDP growth is projected to climb consistently through to 2012 to reach 7.0%, and consumer price inflation to ease from 14.4% in 2008 to an estimated 5.5% by 2013.

The UAE Government is also expected to continue attracting foreign investments by offering a favourable tax environment, imposing few trade controls and providing solid infrastructure and a positive business environment.

Over the next three years, the original shareholder base of Daman will be increased from 2 million shares to a maximum of 4 million shares, thereby broadening the shareholder base and positioning the company financially to capitalize on market opportunities.

Daman Investments has established a remarkable reputation and a vibrant 11-year history as an innovative financial services provider, backed by a strong management team whose expertise ensures the success of the company's three key business areas of asset management, brokerage and development capital.

Additionally, Daman maintains its position as a leading investment management company through its dedication to creating outstanding value for its investors by energising the operations of its subsidiaries whose sustained growth contributes tremendously to the company's overall performance and to the growth of its investors.

In line with its commitment to value creation, the company's brokerage business is projected to grow through aggressive capitalisation and business expansion, while the asset management and development capital subsidiaries are to augment revenues through increased fee income from asset management mandates, fund management activities, and a growing pipeline of development capital deals.