Skip to content Skip to Search
Skip navigation

Borouge to sell 10% of shares in IPO as it lists on ADX

By Megha Merani
Borouge produces polyolefins used in cars and food packaging Creative Commons
Borouge produces polyolefins used in cars and food packaging

Abu Dhabi National Oil Company (ADNOC) and its Austrian chemicals partner Borealis AG are planning an initial public offering (IPO) of their petrochemicals joint venture Borouge on the Abu Dhabi Securities Exchange (ADX).

Borouge, a specialty plastics firm that produces polyolefins used in items such as cars and food packaging, said its offering will consist of approximately three billion existing shares, representing 10 percent of the company’s issued share capital, the company said in an announcement on Wednesday.

The offering marks the latest step in Abu Dhabi state energy group’s asset monetisation programme that the company embarked on more than four years ago, building an investment team to monetise assets and raise funds from international private equity groups.

The offering will open May 23 and run to May 28 for retail investors and May 30 for institutional buyers, the company said in an intention to float (ITF) document. Shares are expected to be admitted for trading on the ADX on June 3.

Borouge said it plans to pay dividends to its shareholders biannually, and its ability to pay will depend on factors such as its capital expenditure plans, availability of distributable reserves and market conditions.

For the financial year 2022, it plans to pay a dividend in September of $325 million and a further $650 million the following March. For the financial year 2023, it said it plans to pay a dividend of no less than $1.3 billion.

Last year ADNOC listed its drilling business in Abu Dhabi’s largest IPO to date and Fertiglobe, a joint venture between ADNOC and chemical producer OCI. ADNOC also floated shares in its distribution business in 2017.

Gulf states plan to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a recovery in crude prices to attract foreign investors.

Latest articles

Saudi esports Savvy Games Video length: 05:07

Saudi Arabia plays the long game in a high-stakes market

Saudi Arabia has so far channeled $38 billion into the esports sector through its Public Investment Fund subsidiary Savvy Games Group. This includes high-profile acquisitions such as the $4.9 billion purchase of the Monopoly Go developer Scopely and the $1.5 billion buyout of ESL FaceIt Group, one of the world’s largest esports companies. Critics have […]

Mashreq Bank sells Neopay

Mashreq sells majority stake in NeoBank in $385m deal

Mashreq Bank has sold a 65 percent stake in its subsidiary IDFAA Payments, more commonly known as NeoPay, in a deal worth $385 million. The Dubai-listed lender sold the stake to Bahrain-headquartered alternative asset manager Arcapita Group Holdings Limited and Turkish fintech company Dgpays SARL, according to a bourse filing. It said Mashreq would retain […]

The global titans in the cloud computing market are jostling to get a foothold in Saudi Arabia

Global cloud platforms offer Saudis data protection promises

Saudi Arabia’s cloud computing market is heating up as global players find a footing in the country with promises to secure government information.  Saudi Arabia has set aside $18 billion to become a regional leader in cloud computing, the Saudi Data and AI Authority said this week, allowing foreign companies to open data centres.  Saudi […]

Water, Waterfront, Shipping Container

Turkish exports to the UK hit all-time high

Turkey’s exports to the United Kingdom reached a record high in the first eight months of 2024, according to official data. Exports rose 11 percent year on year to $8.3 billion between January and August, Anadolu Agency reported, citing data from the Turkish Exporters Assembly. The automotive sector led the way, with exports reaching $2.7 […]