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Dubai: Jumbo Electronics, one of the largest consumer electronics retailers in the Gulf, is considering floating an initial public offering through a local stock exchange despite current market conditions.
Peter McElwaine, the company's new chief executive officer, told Gulf News that "being listed on a local stock exchange remains a possibility", although he said that the company is not actively moving towards it and is waiting for the "right time and right place".
The funds raised from the IPO could go towards their expansion plans. Currently, Dh4 million is being invested in the company's next three retail stores coming up in Dubai this year, according to J. P. Nambiar, general manager, retail division, Jumbo Electronics.
McElwaine said, "We will continue with the expansion strategies that we've had in place for some time now." Delving into the details of the upcoming stores, he said the company is about to open two stores in Dubai Mall, as well as one in the Jumeirah Beach Residences in the next two months.
Reflecting on the strategy of other retailers that offer a wide spectrum of electronics, McElwaine said, "We continue with our three C's model of consumer electronics, computers and communication," adding that "there is room for different formats in the market".
Elaborating on the focus of the company, McElwaine said: "By keeping a focus in products, we are in the position to deliver those value-added services."
The company is growing by over 30 per cent annually in terms of sales, he said. Without divulging the value, he added that the annual turnover of about Dh2 billion figure of three years ago "has grown significantly."
Promotion
Gitex Offers
Last year, Jumbo Electronics saw about 30 per cent growth in sales during Gitex compared to 2006 and Peter McElwaine, the company's chief executive, said that they are expecting similar growth rates this year during the technology week.
The company has doubled its spending for promotions, from Dh600,000 to Dh1 million on promotions and another Dh500,000 on advertising. Their stand will be taking up 25 per cent more space than they had last year.
During Gitex promotions, the company will be giving out two laptops every hour, amounting to 138 laptops in seven days. The company will be giving away prizes at a combined value of Dh1 million.
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