Abu Dhabi’s ADQ and Chimera Investments launch UAE’s first SPAC

Abu Dhabi’s ADQ and Chimera Investments launch UAE’s first SPAC

Dubai: Abu Dhabi has its own SPAC, the first such investment vehicle to be launched in the UAE. The investment company ADQ and Chimera Investments have launched ‘ADC Acquisition Corporation’ (ADC), which will operate as a Special Purpose Acquisition Company. ADQ plans to raise Dh367 million through an IPO, of 36.7 million shares at Dh10 each. Shares will be sold to 'qualified' retail and professional investors in a public subscription and listed on the Abu Dhabi Securities Exchange (ADX). ADC will be the vehicle that ADQ and Chimera will use to identify and combine one or more businesses. ADC will identify ‘scalable businesses with strong management teams’. 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' from ADQ and Chimera Investments. ADX was the first market in the region to introduce listing rules for SPACs, which was issued by the UAE’s Securities and Commodities Authority (SCA) in February. The listing of ADC follows a strong performance for ADX in the first quarter of 2022, which