Investcorp Capital Plc's Abu Dhabi initial public offering raised Dh1.66 billion ($451 million) after the deal priced at the top of the range and was upsized by 12 per cent.
The investment vehicle backed by Investcorp Holdings, the Middle East's biggest alternative asset manager, priced 720 million shares at 2.30 dirhams apiece, according to a statement on Friday. The pricing values Investcorp Capital at 5 billion dirhams and implies a dividend yield of 8.4 per cent for the year ending next June.
The company said the offering was heavily oversubscribed with strong demand from international and regional institutional investors. However, it didn't disclose how many times the IPO was oversubscribed, as many other firms have done in the region.
Investcorp sold 398.5 million shares in the offering, while the company sold 321.5 million shares. About $250 million of the offering was taken up by a cornerstone investor, a special purpose vehicle including about 160 investors from across the Gulf, including existing Investcorp clients.
Investcorp Capital's shares will start trading on November 17.
Investcorp Capital invests in private equity, real estate, credit and general partner positions in North America, Europe, the Middle East and Asia. It plans to pay an annual cash dividend equivalent to 8 per cent of net asset exposure, and use proceeds from the IPO to further develop its capital financing services business line and increase investments in capital deployment, as well as funding strategic growth opportunities.
The IPO stands out amid an otherwise gloomy market for share offerings globally.
Investcorp, which has backed luxury firms such as Tiffany & Co. and Gucci Ltd., delisted from the Bahrain stock exchange in 2021 after almost four decades due to low trading volumes and a desire to expand faster. It's backed by Abu Dhabi's Mubadala Investment Co., which acquired a 20 per cent stake in 2017.
The firm has $50 billion in assets under management and counts some of the Middle East's wealthiest among its shareholders.
Citigroup Inc., Emirates NBD PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs Group Inc. and HSBC Holdings Plc worked on the Investcorp Capital IPO as joint global coordinators and joint bookrunners. Moelis & Co. acted as independent financial advisor.