Skip to content Skip to Search
Skip navigation

Abu Dhabi Borouge’s $2 billion IPO set to be ADX’s biggest

By Reuters
Suplied
Borouge: of the 10 percent of the petrochemicals company offered, 88 percent was earmarked for institutional investors, who placed orders of about $65.5 billion

Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its initial public offering topped $83.4 billion.

The shares are due to start trading on the Abu Dhabi Securities Exchange (ADX) on Friday under the symbol BOROUGE, the largest listing to date on the exchange which has seen a string of IPOs in the last two years.

Gulf issuers have raised more than $10 billion from IPOs so far this year, Refinitiv data shows, exceeding European flotations even as global markets remain volatile in the wake of the conflict in Ukraine.

Borouge last week set the offer price for its IPO, indicating it could raise $2 billion in the deal and giving the company an implied equity value of $20 billion.

The company is owned by Abu Dhabi National Oil Company (ADNOC) and Austria’s Borealis. Following the IPO, ADNOC will continue to hold a 54 percent majority stake and Borealis will own 36 percent.

Of the 10 percent of Borouge offered, 88 percent was earmarked for institutional investors, who placed orders of about $65.5 billion.

Among them were roughly $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, Multiply Group and Alpha Dhabi.

Citi, First Abu Dhabi Bank, HSBC and Morgan Stanley were joint global coordinators, while Abu Dhabi Commercial Bank, Arqaam Capital, EFG-Hermes, Goldman Sachs and International Securities LLC joined them as joint bookrunners. Abu Dhabi Islamic Bank and Al Maryah Community Bank acted as receiving banks.

Latest articles

illegal pilgrims Mecca Saudi Arabia

Illegal Hajj pilgrims risk fines and deportation

Fines for Saudi nationals and deportation for foreign residents taking part in the Hajj pilgrimage without a permit have been announced by the country’s interior ministry. Those who help illegal pilgrims also face jail as the kingdom tries to impose stricter controls over the annual rites.  A fine of SAR10,000 ($2,700) will be issued against […]

Accessories, Formal Wear, Tie

EU looks for alternatives as trade talks with GCC stall

The European Union is actively seeking alternative “avenues” for economic cooperation with the GCC following a deadlock in free trade agreement talks, said Johannes Hahn, the EU commissioner for budget and administration. “We would be interested, of course, to get an agreement [with the GCC], but we have not made a lot of progress,” Hahn […]

A view of the 'command centre' at Adnoc headquarters. Adnoc L&S serves more than 100 customers worldwide, including Adnoc

Adnoc Logistics & Services first-quarter profit up 34%

Adnoc Logistics and Services – a subsidiary of Abu Dhabi National Oil Company – reported a 34 percent year-on-year increase in net profit to $194 million (AED712 million) in the first quarter of the year. Its revenue rose 42 percent year on year to $840 million in Q1, while EBITDA increased 44 percent to $286 […]

Emaar China Palace Hotel Downtown Dubai

Emaar Hotels reveals wide expansion plans

Emaar Hospitality Group is talking to investors in Europe, the Middle East and China to expand its footprint regionally and internationally. The Dubai-based company is behind iconic names such as The Address Hotels & Resorts, Vida Hotels, Palace Hotels & Resorts and Armani Hotels & Resorts. Mark Kirby, Emaar Hospitality’s CEO, told AGBI the company […]