UAE’s first special purpose acquisition company (SPAC), ADC Acquisition Corporation (ADC) has started trading on the Abu Dhabi Securities Exchange (ADX).
The SPAC was established by Abu Dhabi-based holding company ADQ and private investment firm Chimera Investments in order to identify and acquire one or more businesses.
The listing of ADC offers target businesses the opportunity to access capital in Abu Dhabi’s capital markets using an alternative method to the conventional IPO process. These companies will also benefit from ADQ and Chimera Investment’s vast multi-sector expertise and combined network.
“The UAE’s first SPAC represents a major endorsement of Abu Dhabi as a financial center anchored with strong market principles and capital-raising potential. Not only will ADC strengthen Abu Dhabi’s capital markets, but private companies will also have the ability to capitalize on pursuing further transactions in an easier and much more efficient manner. Ultimately, we aim to enhance the business environment in Abu Dhabi and contribute to establishing the UAE’s capital as a leading hub for private companies seeking to go public.”
Mr. Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of ADX said that, “The listing of ADC on the ADX highlights the pioneering role our exchange has taken in creating an environment that supports the evolving needs of issuers and investors. Harnessing global best practices, the UAE’s SPAC regulatory framework will provide international investors with unique growth opportunities in a stable economic environment.”
As the UAE’s first SPAC, ADC aims to focus on businesses that are based or have their main operations within the UAE and across the Middle East and North Africa (MENA) region.
“Through ADC, we will be able to channel liquidity to regional businesses, provide swift and cheaper access to capital markets, and offer investors the ability to tap into this new and highly dynamic space in the UAE while enjoying greater transparency and world-class operational and market expertise,” commented Mr. Syed Basar Shueb, Chairman of Chimera Investment and Vice Chairman of ADC.
ADX was the first market in the region to introduce comprehensive listing rules under the regulatory framework for SPAC, which was issued by the UAE’s Securities and Commodities Authority (SCA) in February 2022.