Qannas to raise $50m in AIM listing
Abu Dhabi, January 18, 2012
Qannas Investments, a company managed by Abu Dhabi Capital Management (ADCM) aims to raise up to $50 million through an initial offering by way of placement of its ordinary shares to institutional and other investors.
Qannas Investments is a Jersey-domiciled closed-ended investment company which involves a $200 million investment program with funds expected to be raised in four equity offerings over 3 to 4 years.
The company said it will apply for the admission of its shares to trading on AIM, a market of the London Stock Exchange.
Qannas seeks to generate a target IRR of at least 20 per cent by investing in a diversified portfolio of undervalued equity and debt investments, with a focus on the Gulf countries, said its investment manager ADCM.
Chris Ward, the Qannas chairman said, "We believe that this is an under-invested region with strong credentials, including strong economic growth rates and a wealth of natural resources: GCC countries hold 35 per cent of the world’s known oil reserves and 22 per cent of global gas reserves."
"Liquidity dislocation in the region has led to declines in asset values, creating compelling investment opportunities."
Qannas, he said, offers a rare opportunity for international investors to access these markets and tap into the expertise of a manager with specialist local knowledge
According to Ward, the investment strategy is to utilise ADCM’s investment expertise to acquire assets at a discount to their intrinsic value from vendors who are either distressed or seeking to re-position their investment portfolios.
It is intended that the company will invest 80 per cent of its capital in the GCC region with the balance utilised opportunistically on a global basis.
The Qannas board once constituted will consist of four directors: three independent directors and the ADCM chief executive officer Jassim Alseddiqi. It will be chaired by Chris Ward.
Deloitte is acting as nominated adviser to the company, while Daniel Stewart & Company are the broker. Appleby has been appointed as Jersey legal adviser, and Herbert Smith as English law adviser.
BDO is the auditor and reporting accountant. Appleby Fund Administrators (Jersey) Limited will act as administrator and custodian.-TradeArabia News Service