Citigroup Inc (NYSE:C). has resumed its participation in the initial public offering (IPO) of Investcorp Capital Plc in Abu Dhabi, following a temporary withdrawal due to internal approval obstacles. This move comes shortly after both Citigroup and Goldman Sachs Group Inc (NYSE:GS). were appointed by the Abu Dhabi exchange to implement a price stabilization mechanism at the start of trading.
The requirement for a price stabilization mechanism led to their withdrawal as no leading bank agreed to function as a price stabilization agent, viewing it as a legal ambiguity under UAE law. A different broker was subsequently recruited for this role.
Investcorp Capital Plc, along with its parent company, Investcorp Holdings, is aiming to raise up to 1.49 billion dirhams ($403 million) from the IPO. On the first day of bookbuilding, a special purpose vehicle invested $250 million as a cornerstone investor, covering the entire price range.
In addition to Citigroup, other financial institutions contributing to the IPO as joint global coordinators include Emirates NBD Capital, First Abu Dhabi Bank PJSC, and HSBC Holdings Plc (LON:HSBA). Both Citigroup and Investcorp have declined to comment on this development.
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