Dubai’s Shuaa confirms talks to set up three SPACs

Shuaa Capital said it is in early talks with investment banks to set up three blank-check companies, confirming a Bloomberg News report from last week.

The Dubai-based financial services firm surged as much as 15 per cent on Sunday, with volumes soaring to 170 times the daily average of traded shares.

Bloomberg reported last week Shuaa, which manages close to $14bn in assets, had approached banks to set up three blank-check companies of around $200m each to pursue deals in the energy, finance, and technology sectors.

Special Purpose Acquisition Companies (SPACs) are corporate shells that raise money from investors with the aim of merging with private businesses to take them public. While interest for these vehicles has somewhat waned in the US, they are catching on in the Middle East.

UAE-based Anghami had announced plans to merge with special purpose acquisition vehicle Vistas Media Acquisition in March. Since then, Vistas says it has got “an overwhelming response” from venture capital, private equity firms and entrepreneurs to explore opportunities.

Read: MENA music streaming platform Anghami merges with Vistas Media, to list on Nasdaq New York