ICAP provides comprehensive advisory and placement services to privately held companies looking for growth capital, prestige, market presence, improved corporate governance practices or any other envisaged objective through an IPO.

An IPO is one of the key milestones of the corporate lifecycle with a transformation of corporate culture from being privately held to public presence. The team at ICAP, with hands-on experience of handling many previous transactions, aims to work closely with the owners and management of potential issuers to make sure that they are IPO-ready with optimal transaction structures and corporate governance best practices aligned with regulatory guidelines.

ICAP is in a superior position to provide the full range of IPO related services to issuers encompassing advisory, valuation, underwriting and distribution. The team also has the ability to provide Receiving Bank and Flotation Management Services as per specific client requirements.

Some of the key activities that the team is capable of delivering during the IPO process include:

• Conducting preliminary discussions with the shareholders and management to understand the desired objectives of the transaction
• Evaluating and advising on the IPO readiness of the entity
• Evaluating and advising on the offering in terms of pricing, timing and structure
• Managing the appointment of the required external advisors to the transaction
• Assisting with drafting of the prospectus
• Providing underwriting services if required
• Reviewing all required legal documents
• Liaising with the regulatory bodies and obtaining regulatory approvals
• Organizing/conducting road-shows
• Leading the distribution process and managing co-managers
• Managing the transaction to ensure successful financial closure

The hands-on experience of the team will provide a holistic financial solution to the business, the promoters and its management, ensuring that the objectives of the IPO exercise are met whilst maximizing the benefits and financial gain of going public.

Advising on Mergers and Acquisitions (M&A) stirring up in both private and public arenas is a key focus area of ICAP as this is envisaged as a high potential line of business in the Kingdom as well as in the Middle East region.

The highly proficient and experienced team of ICAP, with a track record in both the local and international domain, regularly engages with clients to advise on achieving their objectives through mergers, acquisitions and divestitures. The team also has in-depth knowledge in specific sectors which adds value to its clientele by objectively evaluating their planned transactions.

ICAP is capable of advising and assisting clients with all types of Mergers and Acquisitions, including;

• Acquisitions of minority or majority stakes in companies (Buy-Side Advisory)
• Divestitures of minority or majority stakes in companies (Sell-Side Advisory)
• Mergers

The team is well-positioned to provide crucial and quality advice throughout the entire transaction process, until closure, and offers the following services:

• Conducting preliminary discussions with the shareholders and management to understand the desired objectives of the transaction
• Evaluating the potential acquisition or divestiture targets
• Conducting valuations and preliminary studies
• Formulating strategies and plans for the transaction
• Coordinating the required due diligence
• Advising on the pricing, structure and timing and assisting with negotiations
• Preparing transaction documentation, valuation and pricing reports
• Preparation of the appropriate marketing materials
• Assisting in finding potential acquirers or targets
• Reviewing the relevant legal documentation
• Assisting in obtaining regulatory approvals
• Formulating an effective execution plan
• Advising on the implementation of the formulated plans
• Managing the transaction to ensure successful financial closure

Furthermore, the team can assist clients with an analysis of strategic alternatives and arranging financing for a transaction in terms of both debt and equity (acquisition financing).

Debt is considered as an alternative source of capital, other than traditional equity financing, for entities who seek diversified financing options.

ICAP’s investment banking team provides a comprehensive service of advisory, arrangement and placement activities in the debt capital markets mainly through the issuance of:

• Conventional Bonds; and
• Sukuks (Islamic Bonds)

Some of the key activities that the team is capable of delivering in this area include:

• Conducting preliminary discussions with the management to understand the desired objectives of the transaction
• Evaluating the business plans of the issuer
• Assessing the optimal capital structure based on clients’ need
• Structuring and pricing of the issue after studying the market appetite
• Financial modeling
• Credit assessment including debt servicing capability of the issue
• Collaboration with authorities to obtain regulatory approvals
• Preparing offering documents/ appropriate marketing materials
• Approaching potential investors
• Negotiations of terms
• Review of the required legal documentation
• Managing the transaction to ensure successful financial closure

Capitalizing on its experience, the highly experienced and innovative team at ICAP is capable of structuring various credit enhancements in order to meet the requirements of clients while achieving market acceptability.

Some of the structured products of the offering may have the following features depending on the requirement of the client:

• Subordinated Debt
• Perpetual Debt
• True Securitizations
• Hybrid Securitizations
• Non-amortizing Debt

Over the years, ICAP has built credibility with consultancy bodies to ensure smooth processing of the transaction whilst complying with the prevailing standards and regulations.

Furthermore, to make the issuance widely accepted by the local and regional market while ensuring liquidity in the secondary market, ICAP is capable of arranging these products complying with Shari’a standards.

With regard to distribution and placements, ICAP has access to a large network of investors including leading conglomerates, corporations, institutions, investment firms and high-net worth individuals.