Abu Dhabi Capital Management to list new Middle East-focused fund on AIM
Qannas Investments Limited is to apply for the admission of its shares to trading on AIM, a market of the London Stock Exchange Plc and to proceed with an initial offering by way of a placing of its ordinary shares to institutional and other investors.
The Company will take the form of a newly-established, closed-ended investment company incorporated in Jersey and regulated by the Jersey Financial Services Commission. Abu Dhabi Capital Management (ADCM), an alternative investment management firm based in Abu Dhabi, will act as investment manager to the Company.
Qannas will seek 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 Cooperation Council (GCC) countries.
Qannas will provide an opportunity to invest in undervalued GCC assets through a manager (ADCM) with a track record in the target region. It is currently intended that the Company’s investments will be held for 3-5 years with the intention of realising values in line with the anticipated economic recovery.
The company’s capital raising programme is designed to minimise cash drag. Qannas intends rapidly to deploy the proceeds of the IPO and subsequent capital raises to a maximum of USD200 miliion. Investors will have full pre-emption rights but will have no obligation to participate in future capital raises.
The Company’s fee structure designed to align the interests of the investment manager with those of the shareholders.
Qannas Chairman Chris Ward, says: “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 offers a rare opportunity for international investors to access these markets and tap into the expertise of a manager with specialist local knowledge.”
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