Abu Dhabi publishing firm completes Dhs623m SPAC merger with ADC

United Printing & Publishing (UPP) is set to list on the Abu Dhabi Securities Exchange (ADX) this week after its merger with ADC Acquisition Corporation (ADC), the Middle East region’s first special purpose acquisition company (SPAC) or blank-cheque firm.

ADQ-backed UPP said the new shares of ADC issued as part of the private investment in public equity (PIPE) transaction will be listed on the ADX on November 9.

“The successful completion of the region’s first-ever SPAC merger is a testament to the continued dynamism and vibrancy of Abu Dhabi’s capital markets and the attractiveness of this new route to public offerings for companies in the UAE,” said Seif Fikry, the CEO of ADC.

The SPAC raised Dhs1.1bn of growth capital, including Dhs734m from the previously announced PIPE transaction.

UPP, the Abu Dhabi-based identification card printing firm, said with the capital the company is well positioned to pursue organic and inorganic growth opportunities regionally and internationally.

The printing firm seeks to secure printing and packaging sectors, which are expected to benefit from structural growth and industry tailwinds.

ADQ will remain the single largest shareholder in the combined company, post-merger. UPP plans to grow its presence internationally and domestically through organic and inorganic paths.

“The transition to a public company marks an inflexion point in our company’s journey and will be a catalyst for the continued expansion and diversification of our business,” said Ali Alnuaimi, the CEO of UPP.

The merger is expected to accelerate the company’s growth strategy and capture a large market share by leveraging its brand, customer base, and the strength of its ecosystem.

MENA region’s first SPAC

ADC, which is backed by ADQ and Chimera Investments, became the first SPAC to list in the Middle East in April 2022.

The blank check firm was created to identify and merge with one or more businesses. It intends to invest in scalable fast-growing, technology-driven firms in the Middle East and North Africa region with strong management teams and attractive valuations.

The UAE SPAC regulatory framework is modelled on the US and international SPAC regulations. ADC, SPAC

It stipulates that upon listing, blank-check firms must ensure that 90 per cent of proceeds are placed in a non-interest-bearing account to protect the interest of the investors.

ADX was the first market in the MENA region to introduce comprehensive listing rules under the newly formed regulatory framework for SPACs issued by the UAE’s Securities and Commodities Authority. The initiative has further cemented Abu Dhabi’s position as a leading financial centre for regional and global investors.

Read: ADQ and Chimera Investments to launch UAE’s first SPAC on ADX