Abu Dhabi's SPAC has secured $200M in PIPE financing
The total gross demand was over $2.17 billion, indicating an oversubscription of more than ten times, according to a statement.
Backed by Chimera Investments and Abu Dhabi Wealth fund ADQ, ADC Acquisition Corporation, the first special purpose acquisition company (SPAC) in the UAE, raised $200 million from its private investment in public equity (PIPE) bookbuild.
The total gross demand was over $2.17 billion, indicating an oversubscription of more than ten times, according to a statement on Zawya.
ADC is the first SPAC established by Abu Dhabi wealth fund ADQ and private investment firm Chimera Investments. SPACs, or Special Purpose Acquisition Companies, are vacant entities that go public through IPOs with the intention of acquiring private companies within a predetermined period, typically around two years. They gained popularity in recent financial markets due to liquidity and investor willingness to support ventures with higher risk profiles.
ADC has agreed to merge with United Printing and Publishing (UPP), a company specialising in ID card printing and last-mile delivery, in a merger that will see ADC issue 734 million new Class A shares at $2.72 per share to subscribers of the PIPE.
ADC also intends to issue 62.3 million new Class A shares in ADC to ADQ as part of the SPAC merger, with ADQ holding the largest stake in the combined company. ADC began trading on the ADX last year after raising over $99 million in an IPO.
ADC shareholders will vote on the UPP merger on October 12.
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Edited by Kanishk Singh