ADC Acquisition Corporation PJSC (ADC), the UAE’s first Special Purpose Acquisition Company (SPAC), announced on Thursday, October 5, that it raised around $200 million (AED 734 million) through the successful completion of its Private Investment in Public Equity (PIPE) book-build.
The issue attracted total gross demand in excess of AED 8 billion, an oversubscription of over 10 times, ADC said.
The PIPE offer drew strong demand from qualified and institutional investors.
ADC is set up by ADQ and Chimera Investments.
The successful completion of the PIPE issue, which is being executed alongside the first-ever SPAC merger in the Middle East, follows the announcement on September 19, 2023 of ADC having entered a business combination agreement with Abu Dhabi-based United Printing & Publishing Sole Proprietorship LLC (UPP).
The business combination is subject to a shareholder vote which is expected to take place on the 12th of October 2023.
ADC will issue 73.4 million new Class A shares at a price of AED 10 per share to the PIPE subscribers.
As part of the concurrent SPAC merger, ADC also intends to issue 62.3 million new Class A shares in ADC for an issue price of AED 10 per share to ADQ as consideration for the transfer of UPP.
Post merger, ADQ will remain the single largest shareholder in the combined company.
Upon completion, UPP will be well positioned, with AED 1.1 billion of proceeds from the SPAC and PIPE fundraising, which will enable the company to pursue organic and inorganic growth avenues.
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