Borouge US$2 bn IPO oversubscribed; to list on ADX

Materials firm Borouge, a joint venture between UAE’s Adnoc (Abu Dhabi National Oil Company) and Austrian chemical producer Borealis, has successfully closed its US$2 billion initial public offering, the biggest to be listed on the Abu Dhabi Securities Exchange (ADX), with demand for the IPO topping almost US$83.4 billion, an oversubscription level of almost 42 times.

After the listing, Adnoc will own 54% of the company, while Borealis will control 36%.

The company had set the price per share for its 10% float at US$0.67, indicating an equity value of about US$20 billion. It sold about 3 billion shares to the public, according to the company.

“The offering was multiple times oversubscribed, with significant demand from UAE retail investors and qualified institutional investors,” the company said.

Of the 10% of Borouge offered, 88% was earmarked for institutional investors who placed orders of about US$65 billion. Among them were roughly US$570 million in cornerstone investments from Abu Dhabi state holding firm ADQ, the Abu Dhabi Pension Fund, the Emirates Investment Authority, India's Adani family and entities controlled by International Holding Company IHC.AD, Multiply Group and Alpha Dhabi ALPHADHABI.AD.

Upon settlement, the proceeds of the transactions will go to selling shareholders – Adnoc and Borealis Middle East Holding, a wholly owned subsidiary of Borealis.

Borouge shares will soon start trading on the ADX. It is the fourth Adnoc subsidiary with a listing on the second-biggest Arab stock market.

“Following the highly successful listings of Adnoc Distribution, Adnoc Drilling and Fertiglobe, Adnoc is bringing to the market a UAE-based, globally competitive market leader,” said Sultan Al Jaber, Minister of Industry and Advanced Technology/Group CEO of Adnoc.

Established in 1998, Borouge employs more than 3,100 people and serves customers in more than 50 countries across Asia, the Middle East and Africa.

It provides PE and PP polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.

(PRA)

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