Daman Investments of Dubai has developed a UAE IPO fund for institutional investors and family offices interested in gaining exposure to companies going public. The goal is to provide returns that are greater than those produced by the index that represents the entire market.
The fund will invest in the upcoming IPOs and in companies that have been listed over the past two years and ‘not yet reached to their full capital return potential’. Dividends would be paid quarterly.
Recent IPOs are setting aside sizeable tranches for institutional and professional investors, and with more coming through the pipeline, Daman reckons this is the ideal moment to get these investors interested.
“The UAE is also emerging from the global economic downturn faster than most countries across the world,” said Daman. “This combined with lack of IPO opportunities in other global markets is leading to very strong foreign institutional investors’ interest in the regional IPOs.”
Daman Investments, according to its chairman Shehab Gargash, “has been a pioneer in generating differentiated product solutions that have created long-term value for our clients. One of our proudest achievements was the establishment of the “Daman UAE Value Fund” in 2001, a closed-ended vehicle that produced a return of more than 300% over the course of five years.
