Abu Dhabi: ADC Acquisition Corporation, a Special Purpose Acquisition Company (SPAC) established by ADQ and Chimera Investments, announced on Wednesday the successful completion of the PIPE (Private Investment in Public Equity) bookbuild, raising Dh734 million with total gross demand in excess of Dh8 billion, implying an oversubscription of over 10 times. The PIPE offer drew strong demand from qualified and institutional investors.
The successful completion of the PIPE subscription, which is being executed alongside the first-ever SPAC merger in the Middle East, follows the announcement on September 19 this year 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 expected to take place on October 12.
ADC will issue 73.4 million new Class A shares at a price of Dh10 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 Dh10 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 Dh1.1 billion of proceeds from the SPAC and PIPE fundraising. The proceeds enable UPP to pursue organic and inorganic growth avenues, and the oversubscription demonstrates strong investor confidence in UPP’s equity story.