Shareholders in Investcorp Capital, which offers capital financing services in the alternative investments space, are looking to raise as much as AED 1.48 billion ($403 million) through the sale of a 29.34% stake in an initial public offering on the Abu Dhabi Securities Exchange.
The company, which is part of the Mubadala Investment Company-backed Investcorp Group, will sell 643 million ordinary shares, including 321.5 million newly issued shares, at a price range between AED 1.90 and AED 2.30 a share. The indicative price band values the company between AED 4.16 billion and AED 5.04 billion, with an implied target dividend yield of 9.9% to 8.4% for the financial year ending June 30, 2024.
Why it matters
Investcorp Capital intends to use the net proceeds of the offering to further develop its capital financing services business and increase its investments into the capital deployment business of about $100 million. Further, it also plans to use the funds to finance strategic growth opportunities and general corporate purposes.