Gulf Capital considering SPAC with Abu Dhabi listing -sources

Abu Dhabi asset manager Gulf Capital is considering setting up a special purpose acquisition company (SPAC) that will list on the Abu Dhabi Securities Exchange, two sources told Reuters.

Gulf Capital, which manages about $2.5 billion in assets, is working with boutique advisory Moelis & Co (MC.N) on the potential transaction, said the sources, who declined to be named because the matter is not public.

Gulf Capital declined to comment. Moelis did not immediately respond to a request for comment.

Investor interest in SPACs, or blank-check companies, is rising in the Middle East as deals have started to face greater scrutiny in the United States.

SPACs raise money to acquire a private firm with the purpose of taking it public, allowing the target to list more quickly on stock exchanges than via traditional initial public offerings.

Dubai-listed investment bank SHUAA Capital said this month it had filed a registration statement with the U.S. Securities and Exchange Commission for the launch of a SPAC worth between $100 million and $200 million that will be listed on the Nasdaq.

A unit of Abu Dhabi state fund Mubadala Investment Company last year raised $200 million for its Blue Whale Acquisition Corp 1 SPAC which listed on the Nasdaq.

The Abu Dhabi Securities Exchange in November proposed a regulatory framework to allow the listing of SPACs, potentially opening the door to a slew of Gulf-focused deals.

The framework was approved by the Securities and Commodities Authority in January. Reporting by Hadeel Al Sayegh; editing by Jason Neely

This article was originally published by Reuters.