Investcorp Capital raises $450m in debut Abu Dhabi listing

Investcorp Capital, a leading provider of capital financing services in the alternative investments space, said it has completed its Initial Public Offering (IPO) and listing on the ADX raising gross proceeds of AED1.66 billion ($450 million), resulting in an implied market capitalization of approximately AED5.04 billion ($1.37 billion).
A unit of Bahrain-based Investcorp, a global asset management and capital financing services major, the company said it had floated 32.85% of its total issued share capital for the IPO and raised AED1.66 billion ($451 million).
The final offer price was set at AED2.3 per share, at the top end of the price range for the IPO, implying a dividend yield of 8.4% for the year ending June 30, 2024 on an absolute and pro-rated basis and 13.5% on annualised basis for IPO investors.
Following the successful completion of its IPO, Investcorp Capital is being now traded under the ticker symbol ‘ICAP’ on the ADX.
Investcorp Capital pointed out that priced at the top of the offer price range at AED2.3 per share, the IPO drew significant demand from institutional investors, both from the region and internationally.
The company is targeting to pay dividends of at least AED422 million ($114.9 million) for the financial year ending June 30, 2024, implying a dividend yield of 8.4% on an absolute and pro-rated basis and 13.5% on an annualized basis for IPO investors.
Speaking at the ADX bell-ringing ceremony, Mohammed Alardhi, Executive Chairman of Investcorp Group, said: “This is a proud and historic moment for Investcorp Group as Investcorp Capital begins life as a listed company on the ADX, bringing with it new professional and institutional shareholders from the region and around the world. As Chairman of Investcorp Capital, my work will be to protect the interests of all shareholders, guiding Investcorp Capital as it grows and delivers returns that will benefit all shareholders.”
“I would like to personally thank my colleagues at Investcorp Group and Investcorp Capital, as well as the many advisors who have supported us for their perseverance and hard work to get us to where we are today,” he added.
Commenting on the listing, ADX Chief Executive Officer Abdulla Salem Alnuaimi said: “We welcome Investcorp Capital, a global alternative investment powerhouse to ADX. This listing is a testimony to the trust that international companies place in the UAE’s capital markets and the country’s stable economy and diversified investor ecosystem.”
On the listing, Investcorp Capital CEO Timothy Mattar said: “Investcorp Capital’s debut on the ADX marks the completion of a successful and first of its kind IPO in the region. The demand from a broad range of investors is testament to the confidence and trust our new shareholders have placed on our strategy and growth potential.”
“We intend to build on the strong track record of Investcorp and provide all shareholders with unrivalled investment opportunities and consistent returns,” he stated.
First Abu Dhabi Bank acted as the listing advisor of the company and will continue to do so for a year starting from today (November 17).
Moelis & Company UK DIFC Branch acted as the independent financial advisor to Investcorp Group, as the selling shareholder.
Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International and HSBC Bank Middle East each acted as joint global co-ordinators and joint bookrunners.
Emirates NBD Bank and First Abu Dhabi Bank were the joint lead receiving banks, while Al Maryah Community Bank and Mashreqbank acted as the receiving banks.
Trade Arabia News Service

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