ABU DHABI - Investcorp Capital Plc, supported by parent company Investcorp Holdings, successfully raised $451 million in its initial public offering (IPO). The shares made their debut on the Abu Dhabi stock market, opening at 2.30 dirhams and briefly climbing to 2.40 dirhams before settling with a slight gain. This strong initial pricing reflects robust demand from global institutional investors, who remained eager despite prevailing geopolitical tensions and economic uncertainties.
The Bahrain-based firm, which delisted from Bahrain's exchange in 2021 to pursue expansion plans, attracted significant interest from a cornerstone group of 160 Gulf investors. These investors acquired shares worth $250 million, demonstrating regional confidence in the company's diverse investment portfolio that includes private equity, real estate, credit management, and general partner positions across the globe.
A notable aspect of Investcorp's IPO was the introduction of a price stabilization mechanism, marking a first for the United Arab Emirates. This feature initially led to hesitation and the withdrawal of two Wall Street banks due to legal concerns; however, they later re-engaged with the process.
Investcorp's successful listing is backed by Abu Dhabi’s Mubadala Investment Co., which acquired a 20% stake in the company back in 2017. With $50 billion in assets under management and a shareholder base that includes Middle Eastern royals and business magnates, Investcorp has a history of investing in prominent luxury brands such as Tiffany & Co (NYSE:TIF). and Gucci Ltd.
The firm's IPO aligns with a series of successful public listings in the Gulf region, including those of SAL Saudi Logistics Services and ADES Holding Co. This trend underscores the vitality of the regional IPO market and suggests continuing investor confidence in Gulf-based enterprises.
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