Shares of the United Arab Emirates’ (UAE) first special purpose acquisition company – set up by Abu Dhabi-based ADQ and US-based Chimera Investment – have started trading on Abu Dhabi Securities Exchange (ADX).
Photo credit: Kamil Rogalinski / Unsplash
The listing comes after the completion of an IPO from ADC Acquisition Corporation, which was launched on May 12 and raised 367 million dirhams (US$99.9 million) by issuing 36.7 million shares at 10 dirhams (US$2.72) per share. The SPAC will trade under the ADC ticker for its shares and the ADCW ticker for its warrants.
The SPAC was established to identify and acquire businesses that are scalable with strong management teams. Potential target firms will be provided with access to funds in Abu Dhabi’s capital markets using an alternative method to the conventional IPO process. Additionally, these companies will also benefit from ADQ and Chimera Investment’s multi-sector expertise and 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,” said ADC chairman Mohamed Hassan Alsuwaidi.
ADC aims to focus on businesses that have their main operations within the UAE and across the Middle East and North Africa region.
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While ADC is open to acquiring companies across industries and sectors, the SPAC will particularly look for businesses with revenue streams underpinned by growth drivers. They must also have solid long-term fundamentals, transformational technologies, experienced management teams, and attractive pricing, which would provide upside potential and benefit from public market access.
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 in February.
Currency converted from UAE dirhams to US dollar: US$1 = 3.67 dirhams.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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