RIYADH: Abu Dhabi-based investment firm ADQ has partnered with Chimera Investments to set up the UAE’s first Special Purpose Acquisition Company, ADC Acquisition Corporation, it said in a statement.
ADC plans to raise 367 million dirhams ($100 million) through an initial public offering of 36.7 million shares, at an offer price of 10 dirhams per share.
The company said the 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, known as ADX.
It said ADC’s launch offers target businesses an opportunity to access capital in Abu Dhabi’s capital markets through a faster and a less expensive way to the traditional IPO method.
“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 Mohamed Hassan Al-Suwaidi, CEO of ADQ, in a press statement.
The listing of the new company follows a strong performance for ADX in the first quarter of 2022, with market capitalization reaching around 1.9 trillion dirhams by the end of March, which is up by 117 percent compared to the same period last year.