Numisbing, a leading Dubai-based numismatics and arts company, has announced plans to launch IPO at Nasdaq First North Stock Exchange in Stockholm, Sweden, next month.
The company – valued at Dh100 million ($27.22 million) with 75 per cent regional market share – will be the first numismatic company from the Middle Eastern region to be listed in any stock exchange, said a statement from the company.
Furthermore, the company has also secured Dh58.6 million ($15.95 million) capital commitment agreement with Gem Global Yield Fund, a multibillion dollar private alternative investment group, based in New York, US, it said.
Ram Kumar, founder and chairman, Numisbing, said: “Our vision is to become one of the world’s most recognised numismatic brands. Since our inception in 2012, we have built a good reputation and customer base in the region while marking great profitability.”
“Going for IPO seemed liked a natural progression to achieve the growth and reach to Asian and European markets. Additionally, our deal with Gem Global will fulfil capital requirement needed to continue the success story and ensure greater visibility within the domain,” he said.
Numisbing has grown rapidly and nearly doubled its turnover in the last two years with growth remaining steady and 2019 looking to be a promising year. The unique business model and innovative procedures have brought about great advancements in the last six years.
“Our ambition is to expand the company while offering greater value to the shareholders and I’m confident our excellent track record will provide impetus to a good market response. While half of the IPO proceeds will be invested into collectibles assets, the rest will be used for expansion of the business to other regions,” he added.
Numismatic collectors’ coins present a greater potential for higher yields than gold, backed up by several decades of highly positive trends. Provided that proper due diligence is conducted in building a portfolio, an investment in rare coins could present an opportunity for lucrative returns.
The market is by nature limited, and as a result, interest continues to grow at a constant upward rate, driving higher prices in the medium and long term.
An index of material, alternative access clauses compiled by consultancy firm Knight Frank shows that the yield of rare coins over a period of 10 years up to 2016 increased by 195 per cent, easily surpassing art (139 per cent), stamps (133 per cent), furniture (31 per cent), and the S&P 500 Index (58 per cent).
The profitability of the company since its inception is high, which has brought with it a high market share. Moreover, only a few listed companies worldwide actually specialise in rare and antique coins and other rare collector’s items, it stated.-TradeArabia News Service