Borealis and ADNOC consider listing stake in Borouge

Borealis and ADNOC consider listing stake in Borouge

Austrian chemical firm Borealis AG and Abu Dhabi National Oil Company (ADNOC) are considering a potential initial public offering (IPO) of a minority stake in their joint venture Borouge. Headquartered in Abu Dhabi, Borouge is a provider of polyolefins.

Borealis and ADNOC say they will provide further material updates as and when appropriate.

Borouge consists of Borouge ADP (Production company) and Borouge Pte (Sales and Marketing company).

ADNOC holds 60% in Borouge ADP, with Borealis holding 40%. Both companies have a 50% shareholding in Borouge Pte.

The first Borouge facility with a capacity of 450,000 tonnes/year of PE was commissioned in 2001. The second and third units took Borouge’s capacity to 2 million tonnes/year and 4.5 million tonnes/year of PE and PP, in 2010 and 2014.

With the current US$6.2 billion expansion of the Borouge petrochemical plant, the biggest in the UAE, in the industrial city of Ruwais, it will produce 1.4 million tonnes/year of PE. Expected to become operational in 2025, the Borouge 4 project includes a 1.5 million tonnes ethane cracker and two PE plants. It will make the site, which already has three units, the world’s largest single-site polyolefin complex with 6.4 million tonnes/year. Borouge 4 products will be mainly sold in Asia, the Middle East and some parts of Africa. ADNOC will supply feedstock for the Borouge 4 unit.

OMV, Austria's oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu Dhabi-based Mubadala.

No listing venue was specified for the IPO but if is to take place on Abu Dhabi Securities Exchange it would be among the latest in a string of IPOs on the second-biggest Arab stock market.


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