UPDATE 2-UAE's Daman Investments eyes IPO for regional push

* Investment firm eyes 30 pct flotation by 2012

* Raises $27 mln from investor, wants further $54 mln in 2009

* Middle East has about 152 IPOs in pipeline

(Adds details, management quotes)

By Nicolas Parasie

DUBAI, Nov 3 (Reuters) - UAE's Daman Investments is looking to sell shares to the public by 2012 to strengthen its financial position, it said on Tuesday, as it looks to tap opportunities in the world's largest oil exporting region.

Daman Investments, which is active in asset management, brokerage and venture capital, intends to float around 30 percent of its capital with the IPO and seeks a listing on either the Dubai or Abu Dhabi exchange.

The IPO's proceeds will be used to finance brokerage activities, to fund the company's commitments and to boost its warchest for possible acquisitions, Chief Executive Shebab Gargash told Reuters.

"We are convinced opportunities will arise in the wake of the financial crisis," Gargash told reporters.

Daman's IPO plans reflect the slow but gradual return of companies' appetite to return to the capital markets, a trend that came to a standstill as a result of the financial crisis.

"We have taken a hard look at the markets and are confident our long term, positive view is justified," Gargash said.

Daman added that the firm this year had attracted a strategic investor, who had committed to invest 100 million dirhams ($27.2 million), and was moving ahead to secure additional equity investment of about 200 million UAE dirhams ($54.5 million) in coming weeks.

After the first round of fundraising, the firm's valuation will be 850 million dirhams, Gargash said. In the near future, Daman could raise an additional 300 million, he added.

Over the next three years the firm's original shareholder base would be increased from 2 million shares to a maximum of 4 million shares, Gargash said.

Analysts expect IPO activity to gather steam again from 2010.

Four companies have listed in the Middle East in the third quarter raising $871.79 million compared with 14 IPOs raising $3.74 billion during the same period last year, Ernst & Young said in a report on Monday.