[2008-07-09]  Damas lists shares on DIFX Discuss
Dubai-based Damas International Limited, the international integrated jewellery and watch retailer, yesterday announced that it has listed its shares on the Dubai International Financial Exchange (DIFX) following a successful regional and international initial public offering to institutional investors. Damas is the first retailer to be listed on the DIFX. The jewellery major successfully raised $270.6 million from the IPO and plans to use its share of the net proceeds 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 capture an increasing share of margins in the manufacturing process. In addition, the proceeds will also be used to restructure a portion of the company’s existing debt as well as for other corporate purposes.

Tawfique Abdullah, Chairman, Damas, said: “We are very pleased to have formed such a strong share register by attracting a broad base of high-quality investors across the GCC and Europe. We believe that this serves as an ideal platform from which to start life as a public company.” Its Chief Executive Officer and Managing Director, Tawhid Abdullah said the level of interest the IPO received, in spite of difficult global equity markets, underlined the Damas’ track record and growth prospects. “Our core markets are experiencing strong growth and the capital we have raised through this IPO enables us to develop our business, capitalise on key opportunities and in turn deliver long-term shareholder value.”

The market capitalisation of the company following the base offering is expected to be $968.6 million based on the Offer Price and the number of shares in issue after the IPO. The base offering comprises 270,583,370 ordinary shares. The Company also granted Credit Suisse Securities (Europe) Ltd and HSBC Bank, 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 per cent of the total number of shares in the IPO, solely to cover over-allotments or short positions resulting from stabilisation transactions, if any.
Source: Copyright © 2001 - 2008, K. Zughaibi & B. Kabbani General Partnership.