Abu Dhabi-based firm invests in several transactions in Egypt

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

The investments reflect ADQ’s continued confidence in Egypt’s strong economic potential. The transactions 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 prominent logistics player; Misr Fertilizers Production Company (MOPCO) and Abu Qir Fertilizers & Chemical Industries, two key industrial companies in Egypt.

The Egyptian economy has proven to be resilient over the past several years. Real GDP growth continues to outpace the majority of emerging market economies with current year projections estimated to reach 5.5 per cent.

With its strategic location and the large size of its domestic market, the investments were driven by taking into account the underpinnings of Egypt’s strong domestic consumption, productivity growth, enormous untapped export potential, and positive trade outlook.

Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, commented: “The UAE and Egypt share a deep relationship underpinned by strong economic and trade ties. Since the inception of ADQ’s $20 billion strategic investment platform with the Sovereign Fund of Egypt, we have executed several investment opportunities in Egypt, with the aim to deliver robust commercial benefits and sustainable growth.”

“The recent transactions are a testament to our long-term commitment to elevate our investment partnership with Egypt and continue deploying capital in projects of commercial importance.”

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 realised, resulting in strong financial returns. These include the acquisition of an 85.52 per cent stake in The Sixth of October for Development and Investment (SODIC) through a consortium comprising Aldar Properties and ADQ, and the acquisition of Amoun Pharmaceutical Company, one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.

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

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

Meanwhile the ADQ, an Abu Dhabi-based investment and holding company, and Chimera Investments, an Abu Dhabi-based private investment firm managing a diversified portfolio of listed and unlisted equities on both local and international markets, announced today they have established ADC Acquisition Corporation (ADC), the UAE’s first Special Purpose Acquisition Company (SPAC).

ADC plans to raise Dhs367 million through an Initial Public Offering (IPO) of 36.7 million shares at an offer price of Dhs10.00 per share. Shares will be sold to qualified retail and professional investors in a public subscription in the UAE and listed on the Abu Dhabi Securities Exchange (ADX).

ADC was established by ADQ, through its Alpha Oryx special purpose vehicle, and Chimera Investments as a SPAC for the purpose of identifying and combining one or more businesses. In its search for acquisition opportunities, ADC intends to identify scalable businesses with strong management teams.

The launch of ADC will offer target businesses an opportunity to access capital in Abu Dhabi’s capital markets through a faster, less expensive alternative to the traditional IPO method. These companies will also benefit from access to the extensive, multi-sector expertise and combined network brought by ADQ and Chimera Investments.

ADC will be led by an accomplished board and management team with a strong reputation in the industry and a wide range of complementary knowledge and skills. Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, will be Chairman of ADC. Syed Basar Shueb, Chairman of Chimera Investments, will be Vice Chairman of ADC. Alsuwaidi said, “We have partnered with Chimera Investments to launch ADC Acquisition Corporation, a SPAC aiming to target companies in the Mena region that are fast-growing, technology-driven businesses 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 consolidate target companies through a differentiated approach, providing private companies a new route to funding from public markets and investors with access to an innovative investment product.”

Shueb added, “With the launch and listing of ADC, Chimera aims to capitalise on ADX’s newly-issued SPAC regulations, offering investors faster access to capital, higher transparency and lower fees. This in turn will increase liquidity and access to financing for Mena-based businesses and reaffirms our leading role in helping to develop the UAE’s capital markets.”

ADX was the first market in the region to introduce comprehensive listing rules under the regulatory framework for SPACs, which was issued by the UAE’s Securities and Commodities Authority (SCA) in February 2022.