The UAE’s first Special Purpose Acquisition Company (SPAC), ADC Acquisition Corporation, will conduct its first public offering this week to obtain cash to purchase fast-growing technology-driven enterprises.
The IPO offer price for UAE’s first SPAC is $2.72 per share. The subscription period for the ADC IPO, which is accessible to both retail and professional investors, will begin on May 12 and end on May 19, the firm said on Tuesday, according to sources.
ADC is a joint venture between Abu Dhabi-based holding company ADQ and private investment firm Chimera Investments that aims to generate Dh367 million ($100 million) through a public offering. It aims to launch 36.7 million shares on the Abu Dhabi Securities Exchange (ADX) at a Dh10 per share offer price.
“ADQ is dedicated to broadening Abu Dhabi’s capital markets by allowing private enterprises to make use of its unique investment platform and presence,” said Mohamed Al Suwaidi, managing director and chief executive of ADQ.
Mr Al Suwaidi, who is also the chairman of ADC, continued, “The establishment of ADC supports that ambition, and we are also pleased by the possibility of retail and institutional investors from the UAE being able to participate in this long-term plan for unlocking the UAE’s economic potential.”
The Spac wants to buy companies situated in the Middle East and North Africa or have their major activities there.
While ADC is open to pursuing acquisition possibilities across industries and sectors, it intends to focus on firms with scalable revenue streams, long-term foundations, transformative technology, and experienced management teams.
A Spac, also known as a blank-cheque corporation, is a vehicle with no commercial operations that are founded to obtain cash through a public offering and subsequently acquire an existing business.
Spacs have fewer standards for disclosure and are growing in popularity in the Middle East. The music streaming rival of Spotify in the Arab world, Anghami, was successfully listed on the Nasdaq in February after combining with a blank-cheque startup.
According to Syed Shueb, chairman of Chimera Investments, ADC’s upcoming IPO on ADX will “facilitate faster access to capital and operational expertise, result in lower fees, more transparency, and allow investors across the region to tap into a highly dynamic and fast-growing new space within the UAE’s capital markets landscape.”
