Al Ramz Corporation Investment and Development is all set to acquire a Dubai-based securities brokerage firm for Dh24 million (Approx. $65 million).
It said in a regulatory filing, “The company endeavors to keep its shareholders informed of further developments in this regard”. This acquisition is aimed at obtaining regulatory approvals.
The filing comes after the firm also reported a net loss of Dh12.5 million in the first quarter to March, compared to a net profit of Dh12.8 million in the same time last year.
On account of lacklustre financial markets performance, the Group attributed its results to unrealised valuation losses on its investment portfolio amounting to Dh18.9 million coupled with contraction of revenues.
“With the perseverance of financial markets woes, we have a conservative approach towards the valuation of our investment portfolio. As a result, investment losses were reported for the quarter which eclipsed achievements in the optimisation of our cost base,” said Mohammad Al Mortada Al Dandashi, the Managing Director of the Group.
He added, “We anticipate the launch of our first fund as well as acquisition of a Dubai based securities brokerage firm in the second quarter to boost our revenues. Consequently, we expect our results for the second quarter of 2019 to reflect a return to profitability following two consecutive quarters of under performance.”