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The Abu Dhabi Stock Exchange (ADX) welcomes the Securities and Commodities Authority (SCA) approval of the region’s first special purpose acquisition company (SPAC) regulatory framework, paving the way for the first special purpose acquisition company (SPAC) to be listed on the ADX this year .
The SPAC Regulatory Framework is the first of its kind in the GCC and was developed by ADX and the Abu Dhabi Department of Economic Development (DED) in collaboration with the SCA and legal and investment experts. Benchmarked and assessed against best-in-class US and international SPAC regulations, a robust framework will provide unique growth opportunities for international investors. The regulation also provides for sponsors outside the UAE to apply for approval to list their SPACs on the ADX.
The UAE SPAC regulations offer sponsors a seamless and efficient listing process with attractive incentives and innovative shareholding structures. Sponsors will be required to raise at least AED100 million in an initial public offering (IPO), and the units sold will include warrants that give investors and sponsors the right to convert them into shares. To protect investors, once the IPO is complete, the SPAC must ensure that 90% of the proceeds are deposited into an interest-free account.
HE Mohamed Ali Al Shorafa Al Hammadi, Chairman Abu Dhabi Department of Economic Development, Comment:
“The introduction of a regulatory framework to support SPAC IPOsis is a testament to Abu Dhabi’s commitment to being at the forefront of innovation. Abu Dhabi’s stringent regulations, coupled with its tax-free status, stable business environment and strong pipeline of fast-growing regional companies, provide SPAC sponsors looking to take their companies public create attractive opportunities. By enhancing the vitality of our capital markets and continuing to connect issuers with investors, we are contributing to the growth and diversification of Abu Dhabi’s economy. A strong financial services sector will help attract a wider range of professionals to live, work and invest in the emirate.”
he Your Excellency Hisham Khalid Tawfiq Abdulkhaliq Malak, Chairman of the Abu Dhabi Stock Exchange, Add to:
“We are excited to create a regional hub for SPACs on ADX. SPACs offer growth opportunities protected by some of the strictest regulations in the world for investors seeking to diversify their portfolios. We are committed to the timely introduction of the SPAC framework and the The exchange is operationally ready to advise sponsors on listing, marketing and communications. The introduction of SPAC regulations complements our efforts to execute our “ADX One” strategy, offering investors the most sought-after products and services, including guaranteed short selling , securities lending, market making and exchange-traded funds. We will continue to encourage exchange listings as we introduce more innovative investment vehicles.”
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