Latham & Watkins Advised Investcorp Capital's Landmark IPO on the Abu Dhabi Securities Exchange

Latham & Watkins Advised Investcorp Capital's Landmark IPO on the Abu Dhabi Securities Exchange

Latham & Watkins served as legal counsel to the underwriters in the initial public offering (IPO) and listing of Investcorp Capital, a prominent provider of capital and capital financing services in the alternative investments realm, on the Abu Dhabi Securities Exchange (ADX).

The offering consists of 720,000,000 ordinary shares, of which 321,500,000 are newly issued and sold by Investcorp Capital, and 398,500,000 are being sold by the pre-existing sole shareholder, Investcorp S.A., representing 32.85 per cent of its total issued share capital.

Marking a significant milestone, Investcorp Capital's initial public offering (IPO) on the Abu Dhabi Securities Exchange stands out as the first in the UAE to employ a price stabilisation mechanism. This innovative approach, coupled with various other unique structuring and regulatory considerations, has set a new precedent for IPOs in the region.

The offering was expanded and met with overwhelming demand, attracting substantial interest from international and regional institutional investors. The final offer price for the shares was established at AED 2.30 per share, resulting in an estimated market capitalisation of AED 5.04 billion (equivalent to $1.37 billion) at the time of listing. This successful offering generated gross proceeds of AED 1.656 billion (equivalent to $451 million).

Latham & Watkins provided comprehensive legal counsel to the underwriters, including Citigroup Global Markets Limited, Emirates NBD Capital PSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, and HSBC Bank Middle East Limited, on matters pertaining to both English and UAE law.

The firm's team, led by Dubai partners Nomaan Raja and Basil Al-Jafari, together with associate David Hayward, expertly navigated the legal complexities of the transaction. Additionally, a broader cross-disciplinary team, including London regulatory partner Rob Moulton and associate Effie Stathaki, offered valuable insights and expertise.