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Sunday, 29 May 2022

ADQ, Chimera launch Middle East’s first blank-check company

Introducing the Middle East’s first SPAC: ADQ and Chimera’s ADC Acquisition Corporation officially began trading in Abu Dhabi on Friday, closing its first day AED 0.5 up at AED 10.50, Bloomberg Asharq reported. The SPAC managed to raise AED 367 mn (USD 100 mn) in its IPO, selling 36.7 mn shares at AED 10 apiece. The ADX is now the region’s first exchange to set up a legal framework for blank-check firms, after issuing its SPAC regs back in February. The blank-check firm will look to merge with one or more “fast-growing, technology-driven businesses with strong management teams and attractive valuations” across the MENA region, ADQ and our friends at Chimera said in a joint statement.

EGY-SPAC when? Egypt has tried to position itself to capitalize on the SPAC fad, and issued a set of regulations aimed at attracting companies to list local blank-firms on the EGX. FRA chief Mohamed Omran even suggested in January that the country’s debut SPAC would launch by February though we haven’t heard anything since then — unsurprisingly perhaps given the war in Ukraine, the tanking US SPAC market, and the poor performance of the EGX.

Did someone say “tanking US SPAC market”? Some 25 companies that completed SPAC mergers in 2020 and 2021 have issued “going-concern” warnings, which indicates that they are likely to go bust within 12 months, the Wall Street Journal reports, citing data from Audit Analytics. That’s more than 10% of all the SPACs that listed during the so-called SPAC boom, with many startups — including several EV makers, scooter-rental company Helbiz, and glass window maker View — missing their forecasts so far. Shares of companies that listed through SPACs in 2021 alone were down 59.5% on average as of Tuesday, according to analysis from University of Florida researchers.




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Interest rates CBE

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S&P 500


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FTSE 100


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Brent crude

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The EGX30 fell 0.5% at Thursday’s close on turnover of EGP 572 mn (32.4% below the 90-day average). Foreign investors were net sellers. The index is down 14.6% YTD.

In the green: EFG Hermes (+3.0%) and CIB (+0.5%).

In the red: Palm Hills Development (-8.9%), GB Auto (-8.3%) and MM Group (-7.6%).

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.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.