[ad_1]
Dubai-based investment manager Daman Investments has launched a new fund that will invest in initial public offerings in the UAE to capitalize on IPO activity in the country’s capital markets.
The Dammam UAE IPO Fund will provide institutional and professional investors with exposure to UAE companies with returns that could be significantly higher than the UAE’s stock index, Dammam said in a statement on Monday.
The new fund offers strong capital appreciation potential as the UAE government’s continued plan to sell stakes in state-owned entities adds momentum to capital markets and improves liquidity, the company said, without specifying the size of the investment vehicle.
“Since its inception, Daman Investments has been a pioneer in creating differentiated products that create long-term value for our clients,” said Shehab Gargash, chairman of Daman Investments.
Building on its legacy, the company has launched the UAE IPO Fund, which will allow investors to take advantage of “a period of strong capital market activity”.
The fund, which is expected to distribute dividends on a quarterly and annual basis, will also invest in companies that have gone public in the past two years and “have not yet reached their full capital return potential,” Ahmed Khizer Khan, chief executive of Dammam, said.
Unlike capital markets in the U.S. and Europe, which have tumbled amid inflation woes and fears of a looming recession, the UAE has gone through a string of IPOs, with various government-owned companies going public.
Dubai announced last year plan Listed 10 state-owned companies, expanding the size of its financial market to around AED3 trillion ($817 billion).
The emirate also plans to set up a Dh2 billion market maker fund to encourage more private companies from sectors such as energy, logistics and retail to go public.
Salik, this is Dubai The sole toll operator is the latest state-owned company to sell its stake in the emirate.
company proposed Its IPO on the Dubai Financial Market earlier this month fetched AED 3.735 billion, and all parts of the deal were more than 49 times oversubscribed.
Total demand rose to $50.2 billion, showing strong demand for state-owned entity stocks.
Salik transaction is in Dubai Water and Electricity AuthorityThe utility raised AED22.41 billion from its public float, making it the largest IPO in the Middle East and Europe since Saudi Aramco went public in 2019.
Tecom, operator of UAE business districts Debut on DFM In early July, there are IPO raises AED 1.7 billion a month ago.
Since its inception, Dammam Investments has been a pioneer in creating differentiated products that create long-term value for our clients
Shehab Gargash, Chairman of Daman Investments
in Abu Dhabi, Burjeel Holdings is the latest company to go public​​ on the Abu Dhabi Stock Exchange. The healthcare provider will sell 11% of its share capital, it said on Monday.
A series of IPOs in the Arab world’s second-largest stock market has significantly improved ADX’s liquidity and foreign investment, making it one of the world’s best-performing stock markets in 2021.
Its market value climbed to 2.25 trillion dirhams ($614 billion) as of Friday’s close.
Companies listed on the Abu Dhabi market this year include Borouge and Abu Dhabi Ports Group.
Nine companies were listed on the exchange last year, including Adnoc Drilling, Fertiglobe, Alpha Dhabi and Yahsat.
Last year, Abu Dhabi also announced AED5 billion initial public offering Fund to help encourage and support private company listed in local stock market.
“Taking advantage of the strong macro outlook and structural reforms…we launched the Dammam UAE IPO Fund to be part of the UAE’s economic growth story,” Mr Khan said.
Updated: September 26, 2022 at 11:00 am
[ad_2]
Source link