UAE: Investcorp Capital to sell 29.34% stake through IPO

Investcorp Capital, an asset management and capital financing services company, on Tuesday said it would sell 643 million shares which represents approximately 29.34 per cent of its issued share capital through initial public offering (IPO) and list on the Abu Dhabi Securities Exchange.

The company, which has announced nominal value of Dh1.84 ($0.50) for each share, will sell 321.5 million new shares.

The company is currently incorporated in the Abu Dhabi Global Market (ADGM).

The first tranche will consist of 5 per cent of the offer shares allocated on a pro-rata basis and open to professional investors. While an offering of 95 per cent is allocated on a discretionary basis and open to professional investors.

The first tranche offer period is expected to start on November 2, 2023, and to close on November 8. While the second tranche offer will run from November 2 to 9. The listing on the Abu Dhabi bourse is expected on November 17, 2023.

There is a minimum application size of Dh250,000 in the First Tranche and Dh5 million in the second tranche.

Investcorp and the selling shareholder retain the right to amend the size of the offering and the size of each tranche, at any time before pricing of the offering, subject to the approval of the UAE’s Securities and Commodities Authority.

Investcorp Capital said it would use the net proceeds of the IPO to further develop the capital financing services business line and increase investments in capital deployment (approximately $100 million), fund strategic growth opportunities of Investcorp Capital going forward, and for general corporate purposes.

“With the support of our four decades of alternative asset management expertise that have allowed Investcorp to grow to approximately $50 billion AuM (including assets managed by third parties) and our global presence, Investcorp is well-positioned to provide a unique investment opportunity and attractive risk-adjusted returns,” said Mohammed Alardhi, executive chairman of Investcorp Group.

Timothy Mattar, CEO of Investcorp Capital, said the firm has been at the forefront of some of the most innovative and successful deals across corporate investments, global credit, real estate, strategic capital, insurance asset management, infrastructure and absolute return investments.

Investcorp Capital said it has entered into a cornerstone investor agreement with the IVC Strategic Investment Company under which it has committed to acquire offer shares in the global offering at the offer price. It has committed approximately $250 million to the IPO.

IVC Strategic Investment Company is a special-purpose vehicle that was established to act as an aggregator of orders from certain wealth management investors and a prominent Abu Dhabi-based institution.

Moelis & Company UK LLP DIFC Branch has been appointed as the independent financial advisor to the selling shareholder.

Emirates NBD Capital, First Abu Dhabi Bank, and HSBC Bank Middle East Limited have each been appointed as joint global coordinators and joint bookrunners. Emirates NBD Bank and First Abu Dhabi Bank have been named as the joint lead receiving banks. Al Maryah Community Bank and Mashreqbank have been appointed as the receiving banks.

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