Home Listing rules Abu Dhabi-based company invests in multiple deals in Egypt

Abu Dhabi-based company invests in multiple deals in Egypt

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The transactions reflect ADQ’s position as a long-term investor in the Egyptian economy.

ADQ, an Abu Dhabi-based investment and holding company, has completed several transactions in listed companies in key sectors of the Egyptian economy, building on its long-term commitment to investing in economic growth of the country through its $20 billion joint strategic investment platform.

These investments reflect the ADQ’s continued confidence in Egypt’s strong economic potential. The deals include stakes in Commercial International Bank (CIB), one of Egypt’s largest banks; Fawry, the leading digital transformation and e-payments platform; Alexandria Container & Cargo Handling Company, a major player in logistics; Misr Fertilizers Production Company (MOPCO) and Abu Qir Fertilizers & Chemical Industries, two key industrial companies in Egypt.

The Egyptian economy has shown resilience in recent years. Real GDP growth continues to outpace that of the majority of emerging market economies, with projections for the current year estimated at 5.5%.

With its strategic location and the large size of its domestic market, investments were motivated by considering the fundamentals of Egypt’s strong domestic consumption, productivity growth, huge export potential untapped and positive business prospects.

Mohamed Hassan Alsuwaidi, Director General and CEO of ADQ, said: “The UAE and Egypt share a deep relationship underpinned by strong economic and trade ties. Since the establishment of the ADQ’s $20 billion strategic investment platform with the Sovereign Wealth Fund of Egypt, we have executed several investment opportunities in Egypt, with the aim of providing solid business advantages and growth. sustainable.

“Recent transactions demonstrate our long-term commitment to elevate our investment partnership with Egypt and to continue to deploy capital into commercially important projects.”

The ADQ is a long-term investor in the Egyptian economy, with an office in Cairo. Since the platform’s inception, a number of strategic investments and partnerships have been made, resulting in strong financial returns. These include the acquisition of an 85.52% stake in The Sixth of October for Development and Investment (SODIC) through a consortium including Aldar Properties and ADQ, and the acquisition of Amoun Pharmaceutical Company, one of the leading Egyptian pharmaceutical manufacturers, distributors and exporters. .

Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of large companies. Its investments span key sectors of the UAE’s diverse economy, including energy and utilities, food and agriculture, healthcare and life sciences, mobility and logistics, among others. .

As a strategic partner of the government of Abu Dhabi, the ADQ is committed to accelerating the transformation of the emirate into a globally competitive and knowledge-based economy.

At the same time, ADQ, an Abu Dhabi-based investment and holding company, and Chimera Investments, an Abu Dhabi-based private investment company that manages a diversified portfolio of listed and unlisted equities in local markets and companies, today announced the creation of ADC Acquisition Corporation. (ADC), the first Special Purpose Acquisition Company (SPAC) in the United Arab Emirates.

ADC plans to raise Dhs 367 million through an initial public offering (IPO) of 36.7 million shares at an offering price of Dhs 10.00 per share. The shares will be sold to qualified retail and professional investors through public subscription in the United Arab Emirates and listed on the Abu Dhabi Stock Exchange (ADX).

ADC was created by the ADQ, through its ad hoc vehicle Alpha Oryx, and Chimera Investments as SPAC for the purpose of identifying and combining one or more companies. In its search for acquisition opportunities, ADC aims to identify scalable companies with strong management teams.

The launch of ADC will provide target companies with the opportunity to access capital in the Abu Dhabi Capital Markets through a faster and cheaper alternative to the traditional IPO method. These companies will also benefit from access to the vast multi-sector expertise and combined network brought by ADQ and Chimera Investments.

ADC will be led by an accomplished Board of Directors and management team with strong industry reputations and a wide range of complementary knowledge and skills. Mohamed Hassan Alsuwaidi, Director General and CEO of the ADQ, will serve as President of the ADC. Syed Basar Shueb, president of Chimera Investments, will serve as vice president of ADC. Alsuwaidi said, “We have partnered with Chimera Investments to launch ADC Acquisition Corporation, a SPAC aimed at targeting businesses in the Mena region that are fast-growing, technology-driven companies with strong management teams and attractive valuations.

“Through ADC, we are creating a desirable investment structure in the UAE that is well positioned to identify and nurture target companies through a differentiated approach, offering private companies a new avenue of public market funding and investors with access to an innovative investment product. ”

Shueb added, “With the launch and listing of ADC, Chimera aims to capitalize on ADX’s new SPAC regulations, providing investors with faster access to capital, greater transparency and lower fees. This will in turn increase liquidity and access to finance for businesses based in the Mena region and reaffirm our leading role in the development of the UAE’s capital markets.

ADX was the first market in the region to introduce comprehensive listing rules in the SPAC regulatory framework, which was released by the UAE Securities and Commodities Authority (SCA) in February 2022.