Investcorp Has Muted Debut After $451 Million Abu Dhabi IPO
Investcorp, a Bahrain-based alternative investment manager, had a muted debut on the Abu Dhabi Securities Exchange after raising $451 million in its initial public offering.
Background of Investcorp
Investcorp was founded in 1982 and is one of the largest alternative investment managers in the Middle East and North Africa region. It has offices in Bahrain, London, New York, Riyadh, and Singapore. The company manages more than $25 billion in assets and provides a range of services, including private equity, real estate, and hedge fund investments.
Investcorp’s IPO was the largest in the United Arab Emirates since 2017. The company sold a total of 200 million shares at a price of 2.25 dirhams ($0.61) each. The IPO was oversubscribed by more than three times, with demand reaching $1.5 billion.
Reaction to the IPO
Investcorp’s shares opened at 2.30 dirhams ($0.63) on the Abu Dhabi Securities Exchange, up 2.2% from the IPO price. However, the stock quickly fell back to the IPO price and closed at 2.25 dirhams ($0.61).
Analysts attributed the muted reaction to the stock to the fact that the IPO was priced at the lower end of the range. The company had initially planned to price the shares between 2.25 and 2.75 dirhams ($0.61 to $0.75).
Funds Raised from the IPO
Investcorp said it would use the proceeds from the IPO to expand its business and invest in new opportunities. The company also said it would use the funds to pay down debt and for general corporate purposes.
Investcorp has seen strong growth in recent years, with its assets under management increasing by more than 20% in the past two years. The company has also seen a rise in its profits, with net income increasing by more than 50% in the past two years.
Outlook for Investcorp
Investcorp is well-positioned to capitalize on the growth opportunities in the Middle East and North Africa region. The company has a strong track record of delivering returns to its investors and is well-positioned to benefit from the region’s growing economy.
The company is also well-positioned to benefit from the increasing demand for alternative investments in the region. With its strong track record and experienced management team, Investcorp is well-positioned to capitalize on the growth opportunities in the region.
Risks for Investcorp
Despite the potential for growth, Investcorp faces several risks. The company is exposed to market volatility and geopolitical risks, which could affect its performance. In addition, the company is exposed to currency risks, as it operates in multiple currencies.
Investcorp had a muted debut on the Abu Dhabi Securities Exchange after raising $451 million in its initial public offering. The company is well-positioned to capitalize on the growth opportunities in the Middle East and North Africa region, but it faces several risks, including market volatility and geopolitical risks.