Bahrain’s Investcorp Plans IPO on Abu Dhabi Securities Exchange

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Bahrain’s Investcorp Plans IPO on Abu Dhabi Securities Exchange

Bahrain-based Investcorp Capital, a provider of capital and capital financing services in the alternative investments space, on Tuesday announced its plans to proceed with an initial public offering (IPO) of 64.3 million shares with a nominal value of $0.50 each, representing approximately 29.34% of its issued share capital post issuance of the new shares on the Abu Dhabi Securities Exchange (ADX).

The shares will be comprised of 32.15 million new shares to be issued by the company and 32.15 million existing shares to be sold by Investcorp as existing shareholder.

The company retains the right to amend the size of the IPO and the size of each tranche, at any time before pricing of the IPO, subject to the applicable laws of the UAE and the approval of the Securities and Commodities Authority of the UAE (SCA).

The Company is registered as a public company limited by shares incorporated in the Abu Dhabi Global Market (ADGM) and is subject to the ADGM Companies Regulations 2020 (as amended).

The first tranche offer period is expected to start on 2 November 2023 and to close on 8 November 2023. The second tranche offer period is expected to start on 2 November 2023 and close on 9 November 2023 and admission to listing on the ADX is likely on 17 November 2023.

In his comments on the launch of the IPO process, Mohammed Alardhi, Executive Chairman of Investcorp Group, a global asset management and capital financing services company, said that Investcorp Capital is an innovative investment vehicle founded by Investcorp, which will enable investors to access a wide range of asset classes in the alternative investment space.

“With the support of our four decades of alternative asset management expertise that have allowed Investcorp to grow to approximately $50 billion assets under management (AuM), including assets managed by third parties, and our global presence, Investcorp Capital is well-positioned to provide a unique investment opportunity and attractive risk adjusted returns,” he added.

Investcorp Capital’s CEO Timothy Mattar, said that 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 announcement 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,” he said.

Cornerstone Investors

The company has entered into a cornerstone investor agreement with the IVC Strategic Investment Company (Cornerstone Investor) pursuant to which it has committed to acquire offer shares in the global offering at the Offer Price and the Cornerstone Investor has committed approximately $250 million to the IPO.

IVC Strategic Investment Company is a special purpose vehicle that was established to act as an aggregator of orders from certain wealth management investors and a prominent Abu Dhabi-based institution.

Investcorp Capital intends to use the net proceeds from the IPO to further develop the Capital Financing Services business line and increase investments in Capital Deployment (approximately $100 million is expected to be invested in Capital Deployment), fund strategic growth opportunities of Investcorp Capital going forward, and for general corporate purposes.

Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, and HSBC Bank Middle East Limited have each been appointed as Joint Global Coordinators and Joint Bookrunners. Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC have been appointed as the Joint Lead Receiving Banks. Al Maryah Community Bank and Mashreqbank PSC have been appointed as the Receiving Banks.

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