Abu Dhabi-based Investcorp Capital plans to sell 29.3% of its stake in an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), a statement showed Tuesday.
The financial company said it will offer 643 million ordinary shares at a nominal value of $0.50 (AED 1.8) apiece.
The company plans to use the net proceeds of the offering to develop its capital financing services business and boost its investments into the capital deployment business of about $100 million.
Investcorp Capital is set to list on November 17, subject to satisfactory market conditions and obtaining the relevant regulatory approvals in the UAE.
The subscription will be open from November 2-9, 2023, the statement showed.
IVC Strategic Investment Company, a cornerstone investor, has committed approximately $250 million to the IPO. It is a special purpose vehicle established to act as an aggregator of orders from "certain wealth management investors and a prominent Abu Dhabi-based institution," the statement said.
Moelis & Company UK LLP DIFC Branch has been assigned as the financial advisor to the selling shareholder, while Al Maryah Community Bank and Mashreqbank PSC have been appointed as the receiving banks. Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, and HSBC Bank Middle East Limited have each been hired as joint global coordinators and joint bookrunners.
Investcorp Capital has approximately $50 billion in assets under management, the statement showed.
The bulk of the Middle East IPO proceeds in the second quarter was from ADNOC Logistics and Services (L&S), a subsidiary of UAE oil giant ADNOC, which raised $769.5 million from its share offering in May, according to consultancy EY. This is the sixth company that ADNOC Group has listed following the most recent successful listing of ADNOC Gas in the first quarter of 2023.
Abu Dhabi accounted for 14% of all listings worldwide in the first quarter of 2023, amid a challenging global IPO market, the EY data showed. The UAE capital also attracted $3 billion worth of listing proceeds in the first quarter of this year, with ADNOC Gas securing about $2.5 billion (AED 9.1 billion) from the sale of a 5% stake.
Overall, the Middle East and North Africa (MENA) region witnessed as many as 13 listings in the second quarter, a 44% surge compared to the year-ago period, again led by Saudi Arabia and the UAE.
