Dubai, 2 July 2008 - Damas InternationalDamas International Limited ("DamasDamas" or the "CompanyCompany"), the international integrated jewellery and watch retailer, today announces the pricing of shares in its Initial Public Offering ("IPO") at US$1.00 per share (the "Offer Price").

The CompanyCompany received strong interest from a broad base of high-quality institutional investors from both the GCC and Europe which the CompanyCompany believes will form a strong share register when trading of its shares starts on the Dubai International Financial Exchange ("DIFX"). The price was derived via a book building exercise.

The DamasDamas 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. DamasDamas 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

- 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, DamasDamas is expected to be the first retailer to be listed on the DIFX.
- The base offering comprises 270,583,370 ordinary shares. The CompanyCompany 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").
- Excluding the proceeds, if any, resulting from the exercise of the Over-allotment Option, gross proceeds from the IPO will be approximately US$270.6m.
- The market capitalisation of the CompanyCompany following the base offering is expected to be US$968.6m, based on the Offer Price and the number of shares in issue after the IPO.
- 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 DamasDamas 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 CompanyCompany will be 180 days.
- DamasDamas 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 DamasDamas brand and for further vertical integration through investment in manufacturing operations, to allow the CompanyCompany 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 CompanyCompany'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").

Commenting Tawfique Abdullah, Chairman, DamasDamas, 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 DamasDamas' shares once we are listed."

Tawhid Abdullah, Chief Executive Officer and Managing Director, DamasDamas 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, DamasDamas commented:

"We are delighted by the interest international shareholders have placed in DamasDamas. 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."

- Ends -

About Damas
DamasDamas traces its origins back to 1907. The Damas GroupDamas Group has 438 stores in 18 countries around the world, as at 31 December 2007. It has an extensive retail network with stores primarily located in Middle East, South Asia, Europe and North Africa. It enjoys strong brand awareness in the UAE and the wider GCC region. DamasDamas appeals to a wide range of nationalities and socio-economic backgrounds through distinctive store formats, each tailored to a specific type of customer. Les Exclusives caters to high net-worth customers, Semi-Exclusives to upper-middle income consumers such as tourists and expatriates and DamasDamas 22k caters primarily to middle income and working class populations.
In addition to its own brands and products, which account for the majority of sales, DamasDamas also represents international brands such as Tiffany & Co.®, Paspaley®, Parmigiani® and Links of London® in the UAE. DamasDamas also owns international brands such as Stefan Hafner® and La Nouvelle Bague®, amongst others. The Damas GroupDamas Group also owns several watch stores in the UAE in addition to DamasDamas Kids, which targets children and parents. In addition to the retail business, the CompanyCompany sells loose diamonds and gold and diamond jewellery on a wholesale basis.
The CompanyCompany has significant manufacturing capabilities and manufactures gold and diamond jewellery in these facilities. These capabilities encompass the entire cycle from design to manufacturing and branding.
DamasDamas's management team has extensive industry experience and knowledge. In preparation for the IPO, the Board is being expanded to include a strong combination of executive as well as independent members who bring significant business experience to the CompanyCompany. As at 31 December 2007, the Damas GroupDamas Group had 1,820 full-time employees in the UAE and 2,862 employees worldwide.
DamasDamas has a strong track record of solid financial performance. For the three-month period ended 31 March 2008, the CompanyCompany had revenues of AED 1.12 billion, EBITDA of AED 106.7 million, adjusted EBITDA of AED 118.9 million and net profit of AED 69.7 million. For the year ended 31 December 2007, the CompanyCompany had revenues of AED 3.54 billion, EBITDA of AED 251.3 million, adjusted EBITDA of AED 293.6 million and net profit of AED 209.1 million.

For more information, please contact:
Damas InternationalDamas International Limited
Tawhid Abdullah,Chief Executive Officer & Managing Director
P.K. Dutta, Chief Financial Officer
Tel: +971 4 210 5502
Website: www.damasjewel.com

Brunswick Gulf Ltd
Rupert Young / Jeehan Balfaqaih / Azadeh Varzi
Tel: + 971 4 365 8260

This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan, or any other jurisdiction where such an offer or solicitation would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to U.S. persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.
The shares will not be offered in any jurisdiction other than in compliance with the applicable laws, rules and regulations governing the issue, offering and sale of securities to the public. This announcement is only directed at persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49 (2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any offer of securities to the public that may be deemed to be made pursuant to this announcement in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any EEA Member State, the "Prospectus Directive") is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.
This communication does not constitute an offer or invitation, or form the basis for a decision, to invest in any securities of Damas InternationalDamas International Limited in the DIFC or to persons in the DIFC, or by a person from the DIFC. This communication has not been reviewed or approved by the Dubai Financial Services Authority ("DFSA") nor has the DFSA taken any steps to verify the information set out in it.
This communication does not constitute an offer or invitation, or form the basis for a decision, to invest in any securities of Damas InternationalDamas International Limited in the UAE or to persons in the UAE, or by a person from the UAE. This communication has not been reviewed or approved by the Emirates Securities and Commodities Authority ("ESCA") nor has ESCA taken any steps to verify the information set out in it. The purchase of securities in a company involves financial risk. Before deciding to buy any securities you should (a) consult a financial advisor and ensure that you have read carefully the prospectus governing the offer of such securities. The securities may not be, have not been and will not be sold, subscribed for, transferred or delivered in the UAE other than in compliance with the laws of the UAE governing the sale, subscription for, transfer and delivery of securities.
Statements contained herein may constitute "forward-looking statements". Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause the CompanyCompany's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The CompanyCompany does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise

© Press Release 2008

 

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