UAE’s Borouge seeks to raise $2bn from initial public offering

By Shilpa Annie Joseph, Official Reporter
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UAE-based leading petrochemical company Borouge is seeking to raise $2 billion from its initial public offering, set to be the biggest ever listing on the Abu Dhabi Securities Exchange (ADX).

Borouge is a joint venture of the Abu Dhabi National Oil Company (ADNOC) and Austria-based chemical company Borealis.

According to the statement, “Borouge has set the price per share for its 10 percent float at $0.66 (Dh2.45), implying an equity value of approximately $20 billion for the company, which is selling about 3 billion shares to the public.”

The offer price was determined by ADNOC and Borealis (selling shareholders) following investor engagement that saw significant strong initial demand indications from both local and international investors ahead of the start of the subscription period.

As per the statement, “The selling shareholders and Borouge have entered into cornerstone investment agreements with several leading companies.”

International Holding Company (IHC) has committed to a $50 million investment, while Multiply Group and Alpha Dhabi will invest $50 million and $100 million respectively.

“Abu Dhabi holding company ADQ is anchoring the deal with $120 million, while Abu Dhabi Pension Fund has committed $100 million. Emirates Investment Authority is investing $75 million while India’s billionaire Adani family has committed $75 million,” Borouge added.

Through the Borouge IPO, ADNOC is offering investors another highly compelling investment opportunity to invest alongside ADNOC in a company that is set to play a vital role in sustainable growth for Abu Dhabi and the UAE.

“The IPO subscription period starts on Monday and runs until May 28 for UAE retail investors. It will end on May 30 for qualified institutional investors. Borouge shares are expected to start trading on the Abu Dhabi Securities Exchange on June 3,” the statement said.

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