- The DAMAN UAE IPO FUND is an investment vehicle primarily focused on providing investors the opportunity to participate in upcoming IPOs in the UAE
- The Fund will commit to paying dividends, and will have a weekly liquidity that is open to both, institutional and professional investors
- The Fund aims to provide significantly higher returns compared to the expectations from the UAE equity Indices
Dubai, UAE – In line with the ambitions of UAE’s vision to bolster its capital market,
Daman Investments has launched a UAE Initial Public Offering (IPO) mutual fund, providing institutional and Professional investors exposure to companies that are undertaking IPOs in the UAE with the potential for significantly higher returns compared to the expectations from the UAE equity Indices.
With the UAE government’s ongoing privatization program of its state-owned entities, the mutual fund comes at a time when capital markets and liquidity are gathering rapid pace in the country. It is created with the intention of providing investors an attractive opportunity to participate in these upcoming IPOs, with strong capital appreciation potential. The UAE is also emerging from the global economic downturn faster than most countries across the world. This combined with lack of IPO opportunities in other global markets is leading to very strong foreign institutional investors’ interest in the regional IPOs.
Regulated by the Securities and Commodities Authority (SCA), the fund is expected to attract interest from investors across the landscape, including institutional investors, professional investors, and privately-owned family businesses.
Shehab Gargash, Chairman at Daman Investments, said: Since its inception, Daman Investments has been a pioneer in creating differentiated product offerings that have created long-term value for our clients. One of our proud examples was the launch of the ‘Daman UAE Value Fund’ which was a closed ended vehicle in 2001 that has generated a return of more than 300% over a period of 5 years. Building on our legacy, we are excited to launch the Daman UAE IPO Fund which will give our investors the opportunity to participate in a period of strong capital market activity in the UAE.
Ahmed Khizer Khan, Chief Executive Officer at Daman Investments, said: “Leveraging on the strong macro-outlook and structural reforms - including social, economic and labour market reforms, we launched the Daman UAE IPO Fund in September 2022 to be part of the economic growth story of the UAE. The fund will invest in the upcoming IPOs and in companies which have been listed over the past 2 years and have not yet reached to their full capital return potential. Designed to cater to both professional and institutional investors, our Fund expects to pay its investors dividends on a quarter and annual basis respectively.”
Ali El Adou, Head of Asset Management at Daman Investments, said: “Thanks to the skills and expertise of Daman Investments’ Asset Management team, investors of the Daman UAE IPO Fund will benefit from our strong investment track record, dynamic investment process and fundamentally driven bottom- up investment strategy to get top quartile returns. The fund will help investors to capitalise on a strong IPO pipeline over the next 3 years covering not only state-owned entities but also the private sector entities.”