SPAC of the Abu Dhabi Wealth Fund Secures $200 Million in PIPE Financing

ADQ-supported ADC Acquisition Corporation, the inaugural special purpose acquisition company (SPAC) in the UAE, has gathered AED734 million ($200 million) from its private investment in public equity (PIPE) bookbuild.

The overall gross request exceeded AED8 billion, indicating a subscription oversaturation of over tenfold, as noted in the company's disclosure on the Abu Dhabi Securities Exchange (ADX) on Wednesday.

ADC stands as the pioneering SPAC established through collaboration between Abu Dhabi wealth fund ADQ and private investment firm Chimera Investments. The PIPE subscription was conducted in conjunction with the inaugural SPAC merger within the region.

In the previous month, ADC inked an agreement to merge with United Printing & Publishing (UPP), based in Abu Dhabi.

For those who subscribed to the PIPE, ADC will issue 734 million fresh Class A shares at a rate of AED10 per share.

In sync with the ongoing SPAC merger, ADC has outlined its plans to issue 62.3 million new Class A shares within ADC at a rate of AED10 per share to ADQ, serving as consideration for the transfer of UPP.

Following the merger, ADQ will maintain the largest ownership stake in the unified company.

In the previous year, ADC commenced trading on the ADX following an initial public offering (IPO) that generated over $99 million.

Cleofe Maceda / Zawya