ADC Acquisition Corporation PJSC (ADC), the UAE’s inaugural Special Purpose Acquisition Company (SPAC), backed by ADQ and Chimera Investments, has announced the successful closure of the PIPE (Private Investment in Public Equity) bookbuild, raising AED 734M.
Notably, the total demand exceeded AED8 billion, indicating an oversubscription of over 10 times. This PIPE offer garnered substantial interest from qualified and institutional investors.
This achievement in the PIPE subscription coincides with the first-ever SPAC merger in the Middle East, which was revealed on September 19, 2023.
ADC’s Business Merger with UPP Awaits Shareholder Vote
In this merger, ADC entered into a business combination agreement with Abu Dhabi-based United Printing & Publishing Sole Proprietorship LLC (UPP). The business combination remains subject to a shareholder vote scheduled for October 12, 2023.
As part of the process, ADC will issue 73.4 million new Class A shares at a rate of AED 10.00 per share to the PIPE subscribers, according to WAM.
Additionally, within the concurrent SPAC merger, ADC intends to issue 62.3 million new Class A shares to ADQ for AED 10.00 per share as consideration for the transfer of UPP. After the merger, ADQ will continue to be the largest shareholder in the combined entity.
Following the completion of these transactions, UPP will be in a robust financial position with AED 1.1B in proceeds from the SPAC and PIPE fundraising.
These funds will empower UPP to pursue both organic and inorganic growth opportunities, with the oversubscription reflecting strong investor confidence in UPP’s equity prospects.
