ADX to Witness Historic IPO as Investcorp Capital Announces Float

Ibrahim .N. Partners Law Firm, under the leadership of Managing Partner Ahmed Ibrahim has played a pivotal role as the UAE and ADGM issuer’s counsel in a momentous initial public offering (IPO) of Investcorp Capital on the Abu Dhabi Securities Exchange (ADX). Investcorp Capital is a wholly owned subsidiary of Investcorp, a global manager of alternative investments. 

For this landmark venture, several prominent financial institutions have taken on key roles. Moelis & Company UK DIFC Branch is serving as the Independent Financial Advisor to the Selling Shareholder, contributing their expertise to this exceptional IPO. 

Emirates NBD Capital, First Abu Dhabi Bank, and HSBC Bank Middle East Limited have been appointed as Joint Global Coordinators and Joint Bookrunners, symbolizing their commitment to this significant offering. Additionally, Emirates NBD Bank and First Abu Dhabi Bank have been selected as the Joint Lead Receiving Banks, while Al Maryah Community Bank and Mashreqbank are entrusted as the Receiving Banks. 

Investcorp Capital is a pioneering provider of capital and capital financing services in the alternative investments sphere. Their recent announcement of intention to float signals an exciting development for the company and the ADX. The IPO includes 643,000,000 ordinary shares, each with a nominal value of USD 0.50 (equivalent to AED 1.84). These shares represent approximately 29.34% of Investcorp Capital’s issued share capital after the issuance of the New Shares. 

The Offer Shares comprise 321,500,000 New Shares to be issued and sold by the company, along with 321,500,000 existing Shares to be sold by Investcorp S.A. as the Selling Shareholder. These shares will be part of one of the world’s largest seawater desalination projects, significantly increasing Dubai’s installed water desalination capacity to 670MIGD upon completion in February 2027. 

With commercial close achieved in less than ten months from the release of the request for proposal to the market, the remarkable efficiency of this process underscores the excellent leadership of DEWA’s project team and the high level of competence within the power, water, and infrastructure project development in the region. 

Investcorp Capital’s Chief Executive Officer, Timothy Mattar, added: 

“For more than 40 years, Investcorp has been a leading name in alternative asset management – at the forefront of some of the most innovative and successful deals across corporate investments, global credit, real estate, strategic capital, insurance asset management, infrastructure and absolute return investments. Today’s ITF announcement, and Investcorp Capital’s subsequent listing on the ADX, will build on the established track record of Investcorp and give investors an opportunity to take advantage of this presence and access to a portfolio of high-quality private market investments that are expected to deliver consistent, risk-adjusted returns. Together with Investcorp, we are looking forward to the listing and embarking on this new, exciting chapter with Investcorp Capital.” 

Investcorp Capital and the Selling Shareholder have entered into a cornerstone investor agreement with the IVC Strategic Investment Company, a prominent Abu Dhabi-based institution. This partnership reflects confidence in the IPO, with the Cornerstone Investor committing approximately $250 million to the Global Offering at the Offer Price. 

The IPO is an integral part of Investcorp Capital’s growth strategy, with the net proceeds earmarked for several key purposes. These include further development of the Capital Financing Services business line, increased investments in Capital Deployment (approximately $100 million is expected to be invested), and the funding of strategic growth opportunities for Investcorp Capital. Additionally, the proceeds will be used for general corporate purposes. 

The completion of the Offering and Admission is anticipated to occur on November 17, 2023, subject to favorable market conditions and the necessary regulatory approvals in the UAE, including the approval of Admission from the SCA. This promising IPO signifies an important step forward in the journey of Investcorp Capital, offering investors an exciting opportunity to be part of its future growth and success.