Jun 24 2012
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Daman Investments Successfully Completes Private Placement for 22.7% of Company
Shares issued at 70% premium; values company at AED 440 million
DUBAI (United Arab Emirates): Daman Investments PSC, one of the leading UAE-based regional investment management companies, has announced the successful completion of a capital increase through a private placement with an investment of AED 99,999,950 as the company moves forward with future plans culminating with an Initial Public Offering (IPO).
Based on a subscription share value of AED 170 per share, the addition of capital to Daman Investments signifies a 100% fully subscribed round and sees the total number of issued shares rise from 2,000,000 to 2,588,235, with 588,235 additional shares issued in this phase of fund raising. All necessary regulatory approvals were obtained in May 2012 to officially conclude the capital increase.
Commenting on the announcement, Mr. Shehab Gargash, Chief Executive Officer of Daman Investments PSC said, "The success of the capital raise at a premium is a very clear indicator of the value of Daman, and the robust nature of the UAE market, in the midst of one of the most severe crises the world has ever seen. Daman Investments continues to eye launching a future Initial Public Offering based on improved market conditions."
The new share issuance represents 22.7% of the combined total capital base of the company, and values the company at approximately AED 440 million. The new shares were issued at a premium of AED 70 (70%) above their nominal value of AED 100 per share.
Daman Investments ' move to increase capitalization is in line with its commitment to create outstanding value for its investors by energizing the operations of its subsidiaries whose sustained growth contributes tremendously to the company's overall performance and to the growth of its investors' shareholding value.
Daman Investments PSC is a private joint stock company based in Dubai, UAE. From its early beginnings in 1998, the group has grown rapidly into a non-bank financial services company now widely recognised as an authority in its core markets.
Known for offering innovative investment products and services to both regional and international clients, Daman provides investment management and development capital investment opportunities as well as brokerage operations through its subsidiaries. Daman is committed to the principles of ethical business practice and operational transparency. All Daman's various operations are regulated by the United Arab Emirates Central Bank, the Emirates Securities and Commodities Authority (ESCA) and the Dubai Financial Services Authority (DFSA).
© Press Release 2012
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