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

Shein IPO

Mubadala-backed Shein courts investors before London IPO

Chinese fashion retailer Shein, which is backed by the Abu Dhabi sovereign wealth fund Mubadala, is courting European investors before an initial public offering on the London Stock Exchange. Shein is due to hold informal meetings to answer questions and test the investment appetite of major investors in the coming weeks, before its planned IPO […]

Workers stand on a scaffold in Dubai. Building a high rise in the UAE can be as much as two thirds cheaper than in other major cities

Apartments in UAE among cheapest to build in the world

Building a standard residential high-rise in Dubai or Abu Dhabi is up to two-thirds cheaper than in other major global cities, thanks to land, labour and raw materials all costing much less. Land is up to three times cheaper in the UAE compared with the prices paid in New York, London, Hong Kong and Singapore […]

Despite challenges to the economy, Kuwait's bank sector remained resilient, the country's central bank says

Kuwait’s economy holds up against challenges, says central bank

Robust spending and “long-due” structural reforms expected to accelerate following “recent political developments” will help Kuwait’s economy overcome some challenges, according to the Central Bank of Kuwait (CBK). Kuwait faced multiple challenges in 2023 in the face of high inflation, rising global interest rates and bubbling geopolitical tensions in the region, according to CBK’s 12th […]

Saudi Arabia data centre

Four-fold boost to Saudi data centres planned

Saudi Arabia plans to boost its data centre capacity four-fold to more than 1,000 megawatts over the next five years, according to one of the country’s leading data centre providers. The current capacity in the kingdom is approximately 250-300MW. Abdullah Al Ghamdi, CEO of Al Moammar Information Systems (MIS), revealed the target in an interview […]