ABU DHABI, 3rd June, 2022 (WAM) — Abu Dhabi National Oil Company (ADNOC), together with its long-time partner Borealis AG, today listed their petrochemical joint venture Borouge plc, on the Abu Dhabi Stock Exchange. Abu Dhabi (ADX), following the completion of Abu Dhabi’s largest initial public offering (IPO) and the largest petrochemicals listing ever in the Middle East.
The IPO, which generated gross proceeds of over $2.0 billion for the offering of 10% of the company’s total issued share capital, attracted total gross demand of over $83.4 billion million and was oversubscribed almost 42 times in total. The retail offering, which attracted higher retail demand than any UAE IPO in nearly 20 years, was oversubscribed 74 times.
Borouge shares started trading at AED 2.45, implying a market capitalization for the company of $20.05 billion at the time of listing.
Borouge is the fourth company that ADNOC has taken to market since 2017 and follows the highly successful IPOs of ADNOC Distribution, ADNOC Drilling and Fertiglobe.
Speaking at the opening ceremony, Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technologies, Managing Director and CEO of ADNOC Group, and Chairman of Borouge, said: “ADNOC is delighted to achieving today’s truly record-breaking IPO today. of Borouge, which marks the largest entry into the Abu Dhabi market. With outstanding demand from local retail and institutional investors as well as the global institutional investor community, this landmark listing is the fourth company we have successfully on the market.
“This IPO demonstrates our continued contribution to supporting the diversification of Abu Dhabi’s vibrant and vibrant equity market and reinforces ADNOC’s continued role as a critical catalyst for the growth and expansion of the economy. and the UAE’s private sector and in consolidating Abu Dhabi’s position as a global investment destination of choice.
“As part of our ongoing value creation program, we will continue to open up opportunities to expand our investor base and access to capital, while providing domestic and international investors with the opportunity to invest and participate. growth of our world-class portfolio of energy products. Working closely with our long-standing strategic partner Borealis, ADNOC will remain a committed majority shareholder of Borouge, and we look forward to delivering sustainable growth and long-term benefits. term for Abu Dhabi, the United Arab Emirates and our shareholders.
Borealis CEO Thomas Gangl said: “The extraordinary number of subscriptions and the interest in becoming a shareholder of Borouge reinforces the attractiveness of the company and the growth path that Borealis and ADNOC have successfully embarked on over the years. year. Successful IPO facilitates Borealis’ expansion, along with long-time partner ADNOC, continues to be a proud shareholder and welcomes new shareholder base and opportunity for investors to participate in the journey attractive that is shaping up for the company.”
Ahmed Jasim Al Zaabi, Chairman of ADGM, said: “We congratulate Borouge on this important milestone and the tremendous interest it has generated around the world. Despite the volatility in global markets, strong investor interest in Borouge demonstrates the untapped potential and value of UAE businesses for local and global investors.This is a watershed moment for the UAE’s capital and regulatory markets.As Abu Dhabi’s international financial center , we are seeing a significant increase in the number of companies signing up for ADGM and exploring listings in the UAE to capitalize on the strong local presence and international investor demand for UAE National Champions. As a destination of choice that helps businesses thrive, ADGM will continue to help Abu Dhabi organizations realize their ambitions.”
Hisham Khalid Malak, Chairman of ADX, said: “We congratulate Borouge on its successful IPO, and we are delighted to welcome it to the Abu Dhabi Stock Exchange as one of the largest IPOs in the history of our vibrant stock exchange, marking yet another huge milestone for us. Borouge is a prime example of the strong, global partnerships that Abu Dhabi continues to foster, which have led Borouge to strengthen as a leading petrochemical company. ADX is proud of the pivotal and pivotal role it continues to play in Abu Dhabi’s economic diversification efforts as we seek to attract other world-class companies that offer a wide range of products and services and add diversification to our growing offering and our capital market ecosystem. »
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “We are proud to have completed this very successful IPO and to begin our first day of trading on ADX. Borouge has seen exceptionally strong demand from regional and international investors, with a significant cornerstone of high-quality investor engagements, a clear indicator of the strength of our investment thesis and strategic roadmap. are delighted to welcome our new shareholders and we will continue to focus on driving our strategy to develop our innovative polyolefins platform and lead the petrochemicals industrial transition. »
Founded in 1998 as a strategic joint venture between ADNOC and Borealis, Borouge is one of the world’s leading providers of innovative and differentiated polyolefin solutions for the agriculture, infrastructure, energy, packaging, mobility and health. With the historic IPO offering local and international investors the opportunity to own shares of one of the world’s leading petrochemicals players, Borouge expects to pay a dividend of $975 million for fiscal 2022; and pay a dividend of at least $1.3 billion in fiscal 2023, which equates to a dividend yield of 6.5% based on the share’s offering price.
Over the past six years, ADNOC has actively managed its business and capital and successfully developed a more open, flexible and innovative partnership model across its integrated upstream and downstream value chain. This value creation and growth strategy is enabled by a $127 billion (AED466 billion) capital investment program across the Group between 2022 and 2026.
Borouge employs over 3,100 people and serves customers in over 50 countries in Asia, the Middle East and Africa. Upon listing, ADNOC will continue to hold a majority stake of 54% in Borouge, while Borealis ME will hold 36%.