ADQ, an Abu Dhabi-based investment and holding company, and Chimera Investments, a Abu Dhabi-based private investment firm managing a diversified portfolio of listed and unlisted equities on both local and international markets, have established ADC Acquisition Corporation PJSC (ADC), the UAE?s first Special Purpose Acquisition Company (SPAC)
ADC plans to raise US$99.9mn through an Initial Public Offering (IPO) of 36.7 million shares at an offer price of US$2.72 per share. Shares will be sold to qualified retail and professional investors in a public subscription in the UAE and listed on the Abu Dhabi Securities Exchange (ADX).
ADC was established by ADQ, through its Alpha Oryx special purpose vehicle, and Chimera Investments as a SPAC for the purpose of identifying and combining one or more businesses. In its search for acquisition opportunities, ADC intends to identify scalable businesses with strong management teams.
The launch of ADC will offer target businesses an opportunity to access capital in Abu Dhabi?s capital markets through a faster, less expensive alternative to the traditional IPO method. These companies will also benefit from access to the extensive, multi-sector expertise and combined network brought by ADQ and Chimera Investments.
Mohamed Hassan Alsuwaidi, managing director and CEO of ADQ and chairman of ADC, stated, ?We have partnered with Chimera Investments to launch ADC Acquisition Corporation, 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.?
Syed Basar Shueb, chairman of Chimera Investments and vice chairman of ADC, 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 in the region to introduce comprehensive listing rules under the regulatory framework for SPACs, which was issued by the UAE?s securities and commodities Authority (SCA) in February 2022.
The listing of ADC follows a strong performance for ADX in the first quarter of 2022, which was the biggest gainer of the regional stock exchanges. The exchange?s market capitalisation reached approximately US$517mn at the end of March 2022, up 117.1% from the end of March 2021. Liquidity also increased with total value of shares traded at 101.0 billion and total volume of shares traded at 15.6 billion shares, which grew by 87.4% and 49.7%, respectively, compared to the first quarter of 2021.
The listing is subject to market conditions and customary approvals.