ADQ, an Abu Dhabi-based investment and holding company, and Chimera Investments, a leading private investment firm, have established ADC Acquisition Corporation (ADC), the UAE’s first Special Purpose Acquisition Company (SPAC).
ADC plans to raise $100 million through an Initial Public Offering (IPO) of 36.7 million shares at an offer price of $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).
The ADC was established by ADQ, through its Alpha Oryx special purpose vehicle, and Chimera Investments as a SPAC to identify and combine 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.
“We have partnered with Chimera Investments to launch ADC, 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.”
“With the launch and listing of ADC, Chimera aims to capitalize 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,” said Mr. Syed Basar Shueb, Chairman of Chimera Investments and Vice Chairman of ADC.
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 cap reached approximately $517 billion at the end of March 2022, up 117.1 percent from the end of March 2021.
Liquidity also increased with a 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 percent and 49.7 percent, respectively, compared to the first quarter of 2021.