Dubai's Shuaa confirms talks to set up three SPACs, shares surge

Dubai: Shuaa Capital said it is in early talks with investment banks to set up three blank-check companies, confirming a Bloomberg News report from last week.

The Dubai-based financial services firm surged as much as 15 per cent on Sunday, with volumes soaring to 170 times the daily average of traded shares. The stock pared gains to trade up 6 per cent at 10:15 a.m. in Dubai.

Bloomberg reported last week Shuaa, which manages close to $14 billion in assets, had approached banks to set up three blank-check companies of around $200 million each to pursue deals in the energy, finance, and technology sectors.

Special Purpose Acquisition Companies are corporate shells that raise money from investors with the aim of merging with private businesses to take them public. While interest for these vehicles has somewhat waned in the US, they are catching on in the middle east.

UAE-based Anghami had announced plans to merge with special purpose acquisition vehicle Vistas Media Acquisition Co. Inc. in March. Since then, Vistas says it has got "an overwhelming response" from venture capital, private equity firms and entrepreneurs to explore opportunities.