Abu Dhabi – Mubasher: ADC Acquisition Corporation, the UAE’s first special purpose acquisition company (SPAC), entered into an agreement with ADQ Developmental Holding for a business combination with Abu Dhabi-based United Printing and Publishing Sole Proprietorship (UPP).
The transaction marks the region’s first successful SPAC merger process, according to a press release.
ADC was established by ADQ and Chimera Investments in April 2022 to identify a scalable and high-growth business with attractive valuations.
ADQ will issue 62.30 million new Class A shares in ADC at a price of AED 10 per share, implying an equity value of AED 623 million for UPP.
In accordance with the SPAC merger, ADC plans to pursue a private investment in public equity (PIPE ) fundraising of up to AED 734 million to follow organic and inorganic growth avenues for UPP.
In this regard, ADC will offer up to 73.40 million new Class A shares at a price of AED 10 per share in respect of the PIPE fundraising.
Following the merger, UPP will become a publicly listed company on the Abu Dhabi Securities Exchange (ADX), while ADQ will remain the single largest shareholder in the combined entity.
The transaction will be completed through AED 1.10 billion of proceeds from the SPAC and the PIPE fundraising.
UPP will manage to accelerate its growth trajectory in its business segments and capture market share by leveraging its brand, customer base, and the strength of its ecosystem.
Seif Fikry, CEO of ADC, commented: “This transaction marks a notable achievement for ADC and reaffirms ADX as the region's most dynamic financial market.”
“UPP’s high revenue visibility provides a robust foundation for future growth, which can be accelerated with funds that will be raised from the PIPE,” Fikry added.
Ali Alnuaimi, CEO of UPP, said: “This pivotal milestone in our journey sets the stage for ongoing expansion. With this transaction, UPP will be able to significantly accelerate the execution of its organic and inorganic growth strategies.”
