Bahrain-based Investcorp, a global leader in alternative investments, has revised the bottom end of the price range for Middle East alternative asset manager Investcorp Capital's IPO of its investment vehicle upward

following strong investor demand. 

 

A leading provider of capital and capital financing services in the alternative investments space, Investcorp Capital said the Offering has been increased to 720 million ordinary shares (equivalent to 32.85% of the company’s total issued share capital) from 643 million ordinary shares due to strong demand from international and regional institutional investors.

 

The price range, previously announced at AED1.9 to AED2.3 has now been tightened towards the upper level of the previously announced range to AED2.22 and AED2.30 per share for a total offering between AED1.42 billion ($388.52 million) and AED1.48 billion ($403 million).

 

Investcorp Capital said the move comes following approval from the UAE Securities and Commodities Authority (SCA).

 

The subscription periods for the IPO remain unchanged with the first tranche of the Offering already closing yesterday (November 8) with significant oversubscription. It witnessed an offering of 32,150,000 offer shares, allocated on a pro rata basis and open to professional investors.

 

The subscription period for the second tranche - comprising an offering of 687,850,000 of the offer shares, allocated on a discretionary basis and open to professional investors - closes today (November 9).

 

 

Citigroup Global Markets and Goldman Sachs International have joined the consortium as joint global co-ordinators and joint bookrunners.

 

The final offer price will be determined through a bookbuilding process and will be announced tomorrow (November 10). 

 

"The selling shareholder has increased the size of the sale shares offered as part of the IPO in the second tranche from 321.5 million ordinary shares to 398.5 million ordinary shares," said a company spokesman.

 

"While there was no change in the number of ordinary shares in the first tranche, the number of stabilization shares will be increased from 83.8 million to 93.9 million offer shares," he explained.

 

"Assuming all of the shares in the IPO are sold, its size will be approximately $435 million to $451 million," he added.

 

The completion of the IPO and admission of the offer shares to trading on the ADX is currently expected to take place on November 17, subject to all required regulatory approvals.

 

Moelis & Company UK, DIFC Branch has been appointed as the independent financial advisor to the selling shareholder.

 

Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International and HSBC Bank Middle East have each been appointed as joint global co-ordinators and joint bookrunners. 

 

Emirates NBD Bank and First Abu Dhabi Bank have been appointed as the joint lead receiving banks. Al Maryah Community Bank and Mashreqbank have been appointed as the receiving banks.-