Investcorp Capital's IPO Aims to List on ADX

Investcorp Capital plc, a prominent alternative investor based in the Abu Dhabi Global Market, has officially declared its intention to conduct an initial public offering (IPO) and list its stock on the Abu Dhabi Securities Exchange (ADX).

With this move, Investcorp Capital plc aims to offer 321,500,000 new shares, alongside an additional 321,500,000 shares to be sold by the selling shareholder, Investcorp S.A.

Collectively, these shares represent approximately 29.34% of the total issued share capital of the company following the issuance of new shares, as stated in their official announcement.

It's worth noting that the offering's size could potentially be adjusted before the pricing stage.

Key Details on Investcorp Capital's IPO

Interested investors will have the opportunity to subscribe to the IPO from November 2 to November 9, 2023, with the company's listing on the ADX scheduled for November 17.

The indicative price range for the shares will be unveiled on the opening day of the subscription period. The final offer price per share will be determined through a book-building process, which forms a part of the second tranche offering.

Investcorp Capital plc has disclosed its intention to provide semi-annual cash dividends, aiming to deliver at least 8% for the financial year ending on June 30, 2024.

These semi-annual dividend payments are anticipated in February and October of each year.

IVC Strategic Investment Company, a cornerstone investor, has made a commitment to acquire approximately $250 million worth of shares in the IPO. This entity is established as a special purpose vehicle that aggregates orders from select wealth management investors and a prominent Abu Dhabi-based institution, according to the company's statement.

Investcorp Capital, which currently manages assets totaling around $50 billion, plans to utilize the funds raised from the IPO to bolster its deployed capital and support strategic growth opportunities.

For advisory support, Moelis & Company UK LLP DIFC Branch has been appointed as the financial advisor to the selling shareholder.

The IPO will be coordinated by Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, and HSBC Bank Middle East Limited, all serving as joint global coordinators and joint bookrunners.

Additionally, Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC have been designated as the joint lead receiving banks, while Al Maryah Community Bank and Mashreqbank PSC have taken on roles as the receiving banks.

Investcorp Capital's IPO marks a significant step in the region's venture capital funding landscape and represents a notable milestone in the MENA financial market.

The offering has garnered attention from various investors and is poised to make a substantial impact on the Abu Dhabi Securities Exchange.

Brinda Darasha / Zawya