Two UAE-based investment firms have joined forces to launch what they claim is the UAE’s first special purpose acquisition company (Spac).
Chimera Investments and ADQ have established ADC Acquisition Corporation through the latter’s Alpha Oryx special purpose vehicle.
Mohamed Hassan Alsuwaidi, managing drector and CEO of ADQ, will be chairman of the new entity, while Syed Basar Shueb, chairman of Chimera Investments, will be the vice chairman.
The pair plan to raise AED367 million (US$100 million) via an IPO of 36.7 million shares sold to retail and qualified investors and listed on the Abu Dhabi Securities Exchange.
Spacs, also known as blank cheque companies, have become a popular vehicle for private equity firms looking to acquire or merge with private companies.
Abu Dhabi’s Securities and Commodities Authority passed Spac regulations in January in roder to encourage more Spac listings in Abu Dhabi.
Up to now, most Mena-based companies have listed their Spacs in the US so ADC Acquisition Corporation will be the first Spac to list on the ADX since the new rules were passed.
“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,” said Alsuwaidi.
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