Investcorp capital

Investcorp Capital: High dividend yield offset by governance concerns:
• Investcorp Capital’s IPO subscription period ends later this week. Valuation multiples are at a discount to UAE-listed peers
• The stock potentially gives listed equity investors access to an ‘alternative assets’ return profile, within a high dividend yield wrapper
• Investcorp Capital is reliant on majority shareholder Investcorp for operations, deal sourcing and financing.
Please see important information at the end of this report.
How do you value a black box?
That is likely to have been one of the questions GCC family offices have been asking in recent weeks, ahead of Investcorp Capital’s forthcoming IPO. Last week’s announcement of the pricing range for the transaction (AED1.90 – AED2.30 per share), valuing the company at AED4.2-5.0bn (USD1.1- 1.4bn), thus provides some much-needed context.