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Mon 2 Mar 2015 12:21 PM

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Dubai's Daman plans IPO in coming weeks

Sale planned despite recent poor performances

Dubai's Daman plans IPO in coming weeks

Daman Investments will push ahead with its planned IPO in the coming weeks, despite recent poor performing listings in Dubai.

Bloomberg reports that the Dubai-based fund manager is nearing approval from regulatory bodies for the sale of a 55 percent stake.

Daman chairman, Shehab Gargash, said in an interview that KPMG has completed the valuation and the sale will go ahead.

“This is a good time for a fund company to do an IPO as the money would go back to the market,” Gargash said at the Global Financial Markets Forum.

He told Bloomberg that Daman Investments will spend a third of the IPO proceeds on improving its brokerage and another third on real estate. The remainder would be used for seeding new funds, he added.

In the months that followed, two of the most recent IPOs in Dubai both performed poorly on the back of declining oil prices, which led to a sell-off in equity markets.

Since first trading late last year, Dubai-based healthcare start-up Amanat Holdings has dropped 18 percent, while theme park operator Dubai Parks and Resorts dropped about 27 percent.

Other planned IPOs by fleet manager Massar Solutions and Emaar Properties, who planned to sell shares in its hotels unit, were delayed owing to the oil prices and market conditions.

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