ADQ, an Abu Dhabi-based funding and holding firm, and Chimera Investments have established ADC Acquisition Corporation (ADC), the UAE’s first Special Purpose Acquisition Company (SPAC). ADC was established by ADQ, by means of its Alpha Oryx particular objective car, and Chimera Investments as a SPAC for the aim of figuring out and mixing a number of companies. In its seek for acquisition alternatives, ADC intends to establish scalable companies with sturdy administration groups.
ADC plans to boost AED367 million by means of an Initial Public Offering (IPO) of 36.7 million shares at a proposal value of AED10.00 per share. Shares can be bought to certified retail {and professional} buyers in a public subscription within the UAE and listed on the Abu Dhabi Securities Exchange (ADX).
The itemizing of ADC, topic to market circumstances and customary approvals, follows a powerful efficiency for ADX within the first quarter of 2022, which was the most important gainer of the regional inventory exchanges. The alternate’s market capitalisation reached roughly AED1.9 trillion on the finish of March 2022, up 117.1 % from the top of March 2021. Liquidity additionally elevated with complete worth of shares traded at 101.0 billion and complete quantity of shares traded at 15.6 billion shares, which grew by 87.4 % and 49.7 %, respectively, in comparison with the first quarter of 2021.
The launch of ADC will supply goal companies a chance to entry capital in Abu Dhabi’s capital markets by means of a sooner, inexpensive various to the normal IPO technique. These firms will even profit from entry to the intensive, multi-sector experience and mixed community introduced by ADQ and Chimera Investments.
ADC can be led by an achieved board and administration staff with a powerful fame within the business and a variety of complementary information and expertise. Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, can be Chairman of ADC. Syed Basar Shueb, Chairman of Chimera Investments, can be Vice Chairman of ADC.
Alsuwaidi stated, “We have partnered with Chimera Investments to launch a SPAC aiming to target companies in the MENA region that are fast-growing, technology-driven businesses with strong management teams and attractive valuations. Through ADC, we are creating a desirable investment structure in the UAE that is well positioned to identify and consolidate target companies through a differentiated approach, providing private companies a new route to funding from public markets and investors with access to an innovative investment product.”
Shueb added, “With the launch and listing of ADC, Chimera aims to capitalise on ADX’s newly-issued SPAC regulations, offering investors faster access to capital, higher transparency and lower fees. This in turn will increase liquidity and access to financing for MENA-based businesses and reaffirms our leading role in helping to develop the UAE’s capital markets.”
ADX was the first market within the area to introduce complete itemizing guidelines below the regulatory framework for SPACs, which was issued by the UAE’s Securities and Commodities Authority (SCA) in February 2022.