RIYADH: Abu Dhabi’s stock exchange, known as ADX, has paved the way for its first Special Purpose Acquisition Company listing as it approved the Gulf Cooperation Company’s first SPAC framework.
The approval, provided by the UAE’s Securities and Commodities Authorities, brings the region a step closer to global peers, according to Bloomberg.
Through such a move, the UAE aims to grow its capital markets in line with global exchanges, including the US which has raised $250 million from SPAC-led offerings since 2020.
SPACs, also known as blank-check companies, allow private businesses to go public with less strict disclosure rules, through raising money to acquire companies.
Sponsors in Abu Dhabi shall raise a minimum of 100 million dirhams ($27 million) in the initial public offering and will be offered warrants with units sold, giving them the right to convert them into shares.
Fellow GCC countries including Saudi Arabia, have also taken steps to encourage blank-check offerings, with a proposed framework in place for Dubai's bourse.
Elsewhere in the Middle East, Egypt is set to see its SPAC framework launched no later than February, the head of the country's financial regulatory authority said.
SPACs, also known as blank-check companies, allow private businesses to go public with less strict disclosure rules, through raising money to acquire companies.
