Two firms set up UAE’s first Special Purpose Acquisition Company

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  • The ADC Acquisition Corporation ADQ has been formed by ADQ and Chimera Investments, an Abu Dhabi-based private investment firm.
  • ADC plans to raise AED367 million through an Initial Public Offering (IPO) of 36.7 million shares at an offer price of AED10 per share.

ADQ, an Abu Dhabi-based investment and holding company, and Chimera Investments, an Abu Dhabi-based private investment firm, announced they have established ADC Acquisition Corporation (ADC), the UAE’s first Special Purpose Acquisition Company (SPAC).

ADC plans to raise AED367 million through an Initial Public Offering (IPO) of 36.7 million shares at an offer price of AED10 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).

ADC was established by ADQ, through its Alpha Oryx special purpose vehicle, and Chimera Investments as a SPAC for the purpose of identifying and combining one or more businesses.

The firms said 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.

Syed Basar Shueb, Chairman of Chimera Investments, who will be Vice Chairman of ADC, “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,” he said.

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