There was a press release yesterday from Damas about a loan of almost 1 billion dhs. Included was this comment from Tawhid Abdullah, Managing Director of Damas. So how soon is the 'near future' Mr Abdullah?
One to watch out for perhaps, they're a popular jewellery chain in Dubai.
Press Release 09 July 2007 wrote:
'This is a strategic move to spread the risk and rewards of our operations. With the economy booming in most parts of the world, particularly in South Asia and the Middle East, the expansion will offer a good chance to increase the brand capitalization of Damas, while adding to its profitability. To augment further growth, the Group will actively consider floating an IPO in the near future,' he commented.
Planned for the "first quarter"? Of which year? 2008? This news was prompted by the news earlier this week of a change in the law for minimum IPO requirement for family businesses...
Damas IPO worth US$408 m planned for international expansion
Damas Group, the leading jewellery retail chain in the UAE, Middle East and South Asia, is entering a phase of accelerated growth and new corporate structures as it strikes out with a plan for 450 stores in 26 countries by 2008.
Damas plans to raise as much as US$408 million from an initial share sale to help finance its international expansion.
"We'll sell new shares in the first quarter, and because we're now an international company we're looking at a combination of the DIFX and the DFM or the DIFX and London,'' Managing Director Tawhid Abdullah told Bloomberg in a phone interview from Dubai today.
The IPO aims to raise AED1.2 - 1.5 billion (US$327 - 408 million) for expansion and will increase the company's shareholder capital by about 25% to AED 4.5 billion, Abdullah said.
Last month, Damas had announced that a syndicated loan it had floated in association with top international banks BNP Paribas and Gulf International Bank (the co-book runners and mandated lead arrangers) was oversubscribed and had generated US$255 million at an impressive pricing of Libor plus 1.30% per annum. The fund will be used to boost growth and consolidate the regional and international presence of Damas.
Damas Group plans to utilise the raised amounts to propel future growth and expand its regional and international retail base.
Earlier this month, the first Damas Les Exclusives Boutique in London opened in Brompton Road Knighstbridge, right across from Harrods.
In related news the UAE amended Thursday the company's law to allow family owned businesses which convert to publicly traded companies to retain a stake of up to 70%, compared with 45% previously.
Thanks Sid. Here's a couple of lines from ET also...
Emirates Today 31 Aug 2007 wrote:
The UAE-based jewellery retailer Damas also said it was aiming for an IPO. The company plans to raise about Dh1.5 billion selling new shares in the first quarter of 2008, increasing the company’s share capital by 25 per cent to Dh4.5bn.
“We are now an international company, we are looking at a combination of the DIFX (Dubai International Finance Exchange) and London,” managing director Tawhid Abdullah told Bloomberg.
DUBAI: Damas (DAMAS), a Dubai-based family controlled jewellery company, plans to sell shares to the public for the first time this year, according to an investor in the company.
Amwal Al Khaleej, a Saudi private equity company, is working with Dubai jewellery retailer Damas, in which it owns a major stake, to sell shares, its chief executive said yesterday.
“We own 23% of Damas, which is selling a minority stake to the public in 2008 in Dubai,” Ammar Alkhudairy said on the sidelines of a conference in Dubai. The IPO would involve the issue of new shares in the company, he said.
Alkhudairy declined to provide more details on the IPO but said that Amwal Al Khaleej, which has assets worth 2.5bn Saudi riyals ($667mn), is co-ordinating the transaction with other shareholders.
Damas, which is controlled by the family of chairman Tawhid Abdullah, had sales of 4bn dirhams ($1.1bn) last year, up 25% on the previous period, according to a local newspaper.
The company, which operate 386 jewellery stores worldwide, recently opened its first outlet in London, according to the company’s website.
Family-owned companies in Dubai are increasingly expected to capitalise on the region’s stock market boom by selling shares to the public for the first time to help fund expansion.
Alkhudairy also said Amwal plans a new fund that will bring the value of Amwal’s “assets close to 4bn Saudi riyals.”
The company is looking at 10 private equity deals around the Gulf region at present, Alkhudairy said. “We’ll be announcing a deal with an Abu Dhabi company in two weeks,” Alkhudairy added.
Damas will launch their IPO, and list on the DIFX in July 2008, according to "a statement". Where do people find these statements ? There's nothing I can see on the DIFX website, despite its higher standards of disclosure and transparency ... And nothing obvious on the Damas website either.
[edit 23 June 2008] Time for another dose of humble pie for sharewadi (that's twice in one week!). DIFX don't make IPO announcements until all regulatory approvals come through (which is of course the correct thing for them to do). This report was a Damas press release. Sorry ... [/edit]
I saw another report with a Damas listing date of about 08 July 2008, that doesn't leave much time for the IPO then. It must be due to launch in days?
Reuters 18 June 2008:
Dubai jeweller Damas eyes $355 mln in IPO to expand
Reporting by Daliah Merzaban
Dubai-based jewellery group Damas said on Wednesday it would raise as much as $354.73 million in an initial public offering to finance expansion in the Middle East, north Africa and south Asia.
Family controlled Damas plans to sell 270.58 million ordinary shares at between $1 and $1.14 per share and list the shares on the Dubai International Financial Exchange next month, it said in a statement.
The offering of mainly new shares would be open to Middle East and global institutional investors outside of the United States, Damas said.
The IPO includes an over-allotment option of 40.59 million shares -- which could bring the total value of the sale to $354.73 million at the top end of the price range, according to Reuters calculations.
"We look to capitalise on opportunities to further expand our operations given the strong regional economic growth in areas such as the Gulf, north Africa and south Asia," Damas Chief Executive Tawhid Abdullah, said in the statement.
The company plans to spend more than $750 million to double the number of stores it operates from 438 in the UAE and other countries -- including Egypt, Turkey, India and China -- in the next three years, Abdullah was quoted in Emirates Business as saying in April.
The founding family of Damas will not be selling any shares in the IPO, the company said.
Rather, offering represents 28 percent of the enlarged share capital of the company, including 86.4 percent of new shares and 13.6 percent of secondary shares being sold by Amwal al-Khaleej Commercial Investment Co, it said.
Abdullah said last August he could consider a secondary listing on London's Alternative Investments Market.
Damas would be the first retail firm to list on the DIFX, which is 33 percent owned by exchange group Nasdaq OMX Group.
Unlike other Gulf exchanges, the DIFX operates according to international standards of accounting and financial reporting.
I've summarised this and started some analysis in a new topic - Damas analysis. Feel free to point out all my mistakes .
Press Release 18 June 2008:
Damas International Limited
Announcement of intention to float, publication of the preliminary prospectus and offer price range of US$ 1.00 to US$ 1.14 per share
Dubai - Damas International Limited (DAMAS), the international integrated jewellery and watch retailer, today announces its intention to float on the DIFX only and the publication of the preliminary prospectus with an offer price range of US$ 1.00 to US$ 1.14 per share.
The Damas 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. Damas 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.
Offering Highlights
The shares will be listed on the Dubai International Financial Exchange (DIFX). It is expected that listing on the DIFX will become effective and trading will commence on or about 8 July 2008. Upon listing, Damas is expected to be the first retailer to be listed on the DIFX.
The shares will be offered to Middle East and international institutional investors outside the US pursuant to Regulation S.
The Offer comprises 270,583,370 million ordinary shares and represents 28 per cent of the enlarged issued share capital of the Company. The Company has granted to the Joint Global Coordinators (as defined below) an option to purchase within 30 days from the Listing Date, up to an additional 40,587,506 shares at the Offer Price, representing up to 15% of the total number of shares in the Offer, solely to cover over-allotments or short positions resulting from stabilisation transactions, if any, in the Offer (the “Over-allotment Option”). If the Over-allotment Option is exercised in full, the Offer will amount to 311,170,876 shares.
86.4% of the Offer (not including the shares in the Over-allotment Option) will be newly issued shares, the remaining 13.6% are secondary shares being sold by Amwal Al Khaleej Commercial Investment Co. The founding family of Damas 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 Company will be 180 days.
Damas intends to use the net proceeds it receives pursuant to the Offer 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 further vertical integration through investment in manufacturing operations, for the purpose of allowing the Company 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 Company’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”).
The UAE, where Damas is a leading player, is one of the most important jewellery markets in the world. The Company is well positioned to benefit from high levels of growth, economic strength and prosperity across the region.
Commenting on the announcement, Tawfique Abdullah, Chairman, Damas, said: “Listing Damas represents a natural next step as we look to develop our business in both new and established markets. Damas is a business with a well respected brand, operations in some of the fastest-growing, emerging economies and a long and successful track record. We look forward to welcoming new shareholders who wish to participate in our Company’s exciting future.”
Tawhid Abdullah, Chief Executive Officer and Managing Director, Damas said: “This is an important time for Damas as we look to capitalise on opportunities to further expand our operations given the strong regional economic growth in areas such as the GCC, North Africa and South Asia and the growing demand for luxury and lifestyle products as personal incomes rise. At the same time we plan to increase sales densities, improve manufacturing processes and further develop our own brands as well as look for selective acquisitions, investments and alliances.”
About Damas
Damas traces its origins back to 1907. The Damas 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. Damas 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 Damas 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, Damas also acts as distributor or agent or owner for international brands such as Tiffany & Co.®, Paspaley®, Parmigiani®, Stefan Hafner® and Links of London®. The Damas Group also owns several watch stores in the UAE in addition to Damas Kids, which targets children and parents. In addition to the retail business, the Company sells loose diamonds and gold and diamond jewellery on a wholesale basis.
The Company 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.
Damas’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 Company. As at 31 December 2007, the Damas Group had 1,820 full-time employees in the UAE and 2,862 employees worldwide.
Damas has a strong track record of solid financial performance. For the three-month period ended 31 March 2008, the Company 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. As at 31 March 2008, the Company had total assets of AED 5.066 billion. For the year ended 31 December 2007, the Company 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. As at 31 December 2007, the Company had total assets of AED 5.072 billion.
No, the Damas IPO is only for institutions, not retail investors. But retail investors will be able to buy shares on the secondary market after Damas lists. See also the Damas analysis for a summary of IPO initial prospectus . _________________ UAE IPO list | posting guidelines
There is unconfirmed news that Damas IPO is expected very soon. Any Idea about the price ???. Damas will be listed at DIFX. Any IPO prospectus.
What ? Damas IPO already launched. IPO price range $1.00-$1.14. See previous posts in this topic. I didn't see a prospectus anywhere though - except for the summary above. _________________ UAE IPO list | posting guidelines
Dubai - Damas International Limited (DAMAS), 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 Company received strong interest from a broad base of high-quality institutional investors from both the GCC and Europe which the Company 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 Damas 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. Damas 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, Damas is expected to be the first retailer to be listed on the DIFX.
The base offering comprises 270,583,370 ordinary shares. The Company 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 Company 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 Damas 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 Company will be 180 days.
Damas 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 Damas brand and for further vertical integration through investment in manufacturing operations, to allow the Company 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 Company’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, Damas, 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 Damas’ shares once we are listed.”
Tawhid Abdullah, Chief Executive Officer and Managing Director, Damas 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, Damas commented: “We are delighted by the interest international shareholders have placed in Damas. 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.”
I hope Damas does well because that will put the DIFX in the spotlight a bit more and that might attract more listings, then the DIFX could start to see some decent activity, more companies will be attracted to list there, and so on and so on.
But I'm disappointed in the Damas IPO and listing. Damas is a company that almost everyone in Dubai has heard of. It's a popular choice for jewellery shopping and is a well established retail brand name. Shares were priced reasonably (ok, they weren't cheap, but at least they weren't as expensive as DP World), and the public may well have got enthusiastic about the IPO.
Retail investors got snubbed though, since the IPO was only open to institutions. Now there will be fanfare and balloons and press releases on the listing of Damas tomorrow, photos and headlines in the newspapers, ra ra ra. But as a retail investor, I would much rather see the prospectus.
I asked Damas for one but I presume they didn't send it to me because I'm not an institutional investor. That says far more to me about what Damas thinks of retail investors than any press release we'll read tomorrow. How are we supposed to figure out if it's worth buying Damas shares or not ?
Damas (DAMAS) shares in the first couple of hours of trading today have yet to see any deals go through. There's a press release somewhere announcing the start of trading but I don't think it says anything much that hasn't already been said.
As of 13:30 UAE time, maximum Buy order is $1.05, Lowest Sell order is $1.14. Bit of a gap... _________________ UAE IPO list | posting guidelines
Some comments on Damas shares and first day of listing from a Reuters report about Damas 08Q2 profits.
Something is happening, there have been 4 trades as of 14:30, all at $1.05.
Reuters 08 July 2008:
The listing priced the shares at about 17.2 times 2007 earnings, according to Reuters calculations.
Damas could consider a secondary listing after six to eight months, Dutta said.
"I'm not expecting the stock will perform miracles on its first day of trading," said Mohamed Alami, head of the international desk at Dubai-based Naeem Shares & Bonds.
"Investors are not getting value for their money at this P/E, but it is also not expensive. It is a good medium-term holding," he said.
EB this morning said Damas only received AED 101m as IPO proceeds. The Damas press release last week said it was AED 993m (US$271m). EB need to check their currency converter or something. Yesterday they said Methaq Q2 profit was AED 1.5 billion .
Emirates Business 09 July 2008:
Earlier, PK Dutta, chief financial officer of Damas, said that it is planning to invest the $27.6 million (Dh101m) raised through IPO this month in organic and inorganic expansions as well as restructuring its debt until 2010.
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? There's nothing I can see on the DIFX website, despite its higher standards of disclosure and transparency 
... And nothing obvious on the Damas website either.
... [/edit]
.
?
