Investcorp Capital, the Bahrain-based asset manager, has successfully initiated trading on the Abu Dhabi Securities Exchange (ADX) following a notable initial public offering that raised Dh1.66 billion ($451 million). The company, a unit of Mubadala Investment Company-backed Investcorp, experienced a surge in shares, reaching Dh2.40, a 4.34% increase, before settling at Dh2.24 in midday trading. The oversubscribed IPO, priced at Dh2.30 per share, led to a market capitalization of approximately Dh5.04 billion.
Investcorp Capital, buoyed by strong demand from both local and international investors, expanded the number of shares offered to 720 million ordinary shares, constituting 32.85% of the company's total issued share capital. The company plans to pay dividends of at least Dh422 million for the financial year ending June 30, 2024, resulting in an 8.4% dividend yield. Mohammed Alardhi, Executive Chairman of Investcorp Group, expressed pride in this historic moment for the company, emphasizing the entry of new professional and institutional shareholders from around the world.
Why it matters
The IPO aligns with a broader trend of increased listing activity in the Arabian Gulf region, driven by government incentives, foreign investor interest, and economic diversification efforts. In the second quarter of 2023, IPO activity in the wider Middle East and North Africa region surged by 44% annually, reflecting robust economic growth. Abdulla Al Nuaimi, CEO of the ADX, emphasized that Investcorp Capital's listing underscores the trust international companies place in the UAE's stable economy and diversified investor ecosystem.