Borouge, the petrochemicals joint venture with Abu Dhabi National Oil Company (ADNOC), has set an offer price of USD0.66 per share in what is to be the country’s biggest ever IPO. The company has received investment commitments worth USD570 million from investors which include companies based in Abu Dhabi, and the Adani Group from India.
At the stated offer price, Borouge projects an equity valuation of almost USD20 billion. The company plans to list shares on the Abu Dhabi Securities Exchange ADX, according to a statement released by the company.
International Holding Company, Multiply Group and Alpha Dhabi Holding, have respectively committed to shares valued at USD50 million, USD50 million, and USD100 million.
In addition to these companies, ADQ, Abu Dhabi Pension Fund, Emirates Investment Authority and the Adani Family have committed between USD75 million and USD120 million each.
The subscription for the IPO started today, and runs until the 18th of May for retail investors in the UAE, and till the 30th of May for institutional investors. The offering, which consists of 3 billion existing shares, represents 10 percent of Borouge’s issued share capital.
Borouge to start trading in June
Borouge expects the shares to start trading on ADX by June 3.
The company is the latest in a wave of Abu Dhabi based companies that have sought to monetize their assets through an Initial Public Offering.
In the largest IPO in Abu Dhabi till date, ADNOC had listed its drilling business last year. Joint venture between ADNOC and chemical giant OCI, Fertiglobe, made its market debut last year too.
Borouge, a petrochemicals giant, offers solutions for energy, infrastructure, mobility, packaging, healthcare and agriculture.
Borouge is a leading provider of innovative polyolefin solutions.
Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies and a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi, and Austria-based Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilisers and the mechanical recycling of plastics.
Headquartered in the United Arab Emirates, with an innovation centre in Abu Dhabi and a manufacturing plant in Ruwais, an application centre and compounding plant in Shanghai; and a marketing centre in Singapore, Borouge employs more than 3,000 people serving customers in 50 countries across the Middle East, Asia and Africa.