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Tuesday, 25 January 2022

Abu Dhabi issues SPAC regs as it eyes Gulf’s first blank-check listing

The ADX is one step closer to welcoming the GCC’s first SPAC: The UAE’s securities regulator has approved the Gulf’s first regulatory framework for special purpose acquisition companies (SPACs), the Abu Dhabi Media Office said yesterday. The Abu Dhabi Securities Exchange (ADX) could see its first SPAC listing this year, according to the statement. The framework allows sponsors abroad to apply for approval to list their SPACs on the ADX, with sponsors required to raise at least AED 100 mn in the IPOs, after which at least 90% of the SPAC’s capital must be put in a non-interest-bearing account, in a move that is meant to protect investors.

Bahrain-based crypto exchange platform Rain Management has received preliminary approval on a financial services license from the ADX, according to a statement (pdf). Once Rain meets the criteria to get final approval for the license, it will be able to list more digital asset trading pairs on the ADX and expand the scope of its services in the Gulf, the statement says. Rain last week announced it had raised USD 110 mn to fund cross-border expansion in a series B funding round led by Paradigm and Kleiner Perkins.

Saudi Arabia plans to keep its debt levels stable at SAR 938 bn — around 25.9% of GDP — in 2022, the kingdom’s National Debt Management Center said in its annual borrowing plan (pdf). Rising oil prices and production volumes are set to boost the crude exporter’s finances, with borrowing for the year focused on SAR 43 bn in debt refinancing. The kingdom “may explore” a non-USD denominated international issuance, as it looks poised to deliver its first budget surplus in eight years in 2022, amid oil-fueled economic growth.

Down

EGX30

11,616

-0.3% (YTD: -2.8%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

12,068

-0.6% (YTD: +7.0%)

Down

ADX

8,701

-0.1% (YTD: +2.5%)

Down

DFM

3,147

-2.0% (YTD: -1.5%)

Up

S&P 500

4,410

+0.3% (YTD: -7.5%)

Down

FTSE 100

7,297

-2.6% (YTD: -1.2%)

Down

Brent crude

USD 86.27

-1.8%

Down

Natural gas (Nymex)

USD 3.97

-1.5%

Up

Gold

USD 1,845

+0.1%

Up

BTC

USD 36,440

+3.7% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.3% yesterday on turnover of EGP 934 mn (17.8% below the 90-day average). Regional investors were net buyers. The index is down 2.8% YTD.

In the green: EFG Hermes (+1.1%), MM Group (+1.1%) and Eastern Company (+1.0%).

In the red: Cleopatra Hospital (-3.8%), Speed Medical (-3.3%) and Raya Holding (-2.8%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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