ADQ-backed ADC Acquisition Corporation, the first special purpose acquisition company (SPAC) in the UAE, has raised AED734 million ($200 million) from its private investment in public equity (PIPE) bookbuild.
Total gross demand was in excess of AED8 billion, implying an oversubscription of more than ten times, the company said in a disclosure on the Abu Dhabi Securities Exchange (ADX) on Wednesday.
ADC is the first SPAC established by Abu Dhabi wealth fund ADQ and private investment firm Chimera Investments. The PIPE subscription was executed alongside the first-ever SPAC merger in the region.
Last month, ADC entered into an agreement to merge with Abu Dhabi-based United Printing & Publishing (UPP).
ADC will issue 734 million new Class A shares at a price of AED10 per share to those who subscribed to the PIPE.
As part of the concurrent SPAC merger, ADC said it intends to issue 62.3 million new Class A shares in ADC for an issue price of AED10 per share to ADQ as a consideration for the transfer of UPP.
After the merger, the largest stake in the combined company will continue to be held by ADQ.
ADC started trading on the ADX last year following an initial public offering (IPO) that raised over $99 million.
(Writing by Cleofe Maceda; editing by Seban Scaria)