So are the companies who are in the business of Gold. Gold trading has been fruitful for most of the investors and business houses who are in the business of precious metals. Probably, that’s why the Mexican firm Penoles has decided to spin off its precious metals business under a new name of Fresnillo and floating an IPO.
The other companies are not staying behind. Damas, which is known as the retail stor chain of gold jewellery in the Middle East, is all set to come out with an IPO. By the end of this year. Not only that, it also plans to subsequently merge & join hands with a leading regional jewellery chain to create an international giant from the UAE. Who is this official, is not known.
Whaere doe Damas Business valuation stand presently?
Damas, has an annual sales turnover of $1.4 billion (Dh5.14bn) and net profit was $65 million in 2007.
Where will the shares of Damas be listed?
The shares will be listed on the domestic stock market of UAE.
It’s another signinficant milestone for Damas. This is its 100th year of operation, so an IPO for Damas will also be a reason to cheer the 100 years of existence of Damas jewellery.
Where will the IPO capital raised by Damas be used?
The group, estimated to be worth Dh3.5bn, is planning an IPO reportedly in the range of Dh1bn and part of the money raised could be used for the proposed acquisition. Damas was started in 1907 and Abdullah is the fourth generation running the family-owned business. He is also the managing director of the Dubai Gold and Jewellery Group. Damas is 70 per cent owned by four brothers of the Tawhid family and 30 per cent owned by two business groups from the UAE and one business group from Saudi Arabia.
Damas is planning to double its current 430 outlets and 5,000 employees in the UAE and outside within three years and is investing more than $750m for the expansion. It is also considering acquiring a jewellery outlet in central Europe.
The company is targeting new markets in Egypt, Turkey, North Africa, Pakistan, Bangladesh, India and China.
| More and more IPO’s coming out everyday. Let’s see how the Gold business based Damas performs in these market timings. | Table of Contents |
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