July 6, 2022

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ADNOC completes largest initial public offering in Abu Dhabi market

ADNOC completes largest initial public offering in Abu Dhabi market

Abu Dhabi (WAM)
Abu Dhabi National Oil Company (ADNOC) and its strategic partner Borealis today announced the listing of shares of their petrochemical joint venture Borouge on the Abu Dhabi Stock Exchange, following the completion of the largest initial public offering process. Always offered in Abu Dhabi, great for any company. Petrochemicals in the Middle East.

The initial public offering, which earned a total revenue of over $ 2 billion by offering a 10% stake in the company’s published capital, attracted total demand of more than $ 83.4 billion, which is about 42 times the total subscription volume. Target value.

From this segment the coverage target value of the retail segment has exceeded 74 times over the largest percentage of demand in the UAE in the last twenty years. Borouge shares will start trading at 2.45 dirhams per share, which means the company has a market value of $ 20.05 / billion at the time of listing.

Borouge is the fourth company to market a portion of ADNOC’s shares since 2017, following the successful initial public offerings of ADNOC Distribution, ADNOC Drilling and Fertiglobe.

He is the Managing Director and CEO of Abu Dhabi National Oil Company (ADNOC) and its Group of Companies, Minister of Industry and Advanced Technology. Sultan bin Ahmad Al Jaber said on the occasion: “In line with the vision of the leadership, ADNOC’s dual mission of achieving value added from all businesses, we completed the IPO today. Initial acquisition of minority stake in shares of Borouge, a petrochemical company with the largest IPO ever in Abu Dhabi.

The offer saw unprecedented demand from individual investors, national investment firms and global investors, and is the fourth offering of a minority stake in one of ADNOC’s subsidiaries. This subscription reflects ADNOC’s continued commitment to support the growth, diversification and development of the financial markets, national economy and the private sector in the United Arab Emirates, and to ensure Abu Dhabi’s position as an ideal investment destination.

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He added: “Borouge’s unprecedented success reflects the strength of the national economy and the UAE’s key position in attracting investments and companies to influence global financial markets. As a major shareholder with a majority stake, ADNOC continues its long-term commitment to sustainable growth and rewarding returns for the UAE and our partners.

For his part, Borealis CEO Thomas Jungle said: “The exceptional turnout and investor interest in Borouge reflects the company’s charisma and successful growth trajectory, which was launched in recent years with the support of Borealis and ADNOC. Will continue to support Borealis and its strategic partner, ADNOC, as key partners in Borouge, and we look forward to welcoming new partners and others. ”

Commenting on the historic success of Borouge IPO, Ahmed Jassim Al Jabi, Chairman of the Board of Directors of Abu Dhabi Global Market, said: “Congratulations to Borouge on this important achievement. All over the world. Despite the challenges faced by global markets, the great interest of investors in the Borouge IPO has clearly demonstrated the potential and great value of the UAE companies they enjoy with local and international investors. This is a finite moment for the capital and regulatory markets in the United Arab Emirates. As a global financial hub, we have seen significant growth in the list of our companies listed on ADGM interested in exploring listings in the UAE, taking advantage of the huge demand of local and international investors for our UAE companies. . The Abu Dhabi Global Market will continue to support companies across Abu Dhabi to achieve their goals as it is a preferred location for companies to help and support greater growth and prosperity.

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For his part, Hisham Khalid Malek, Chairman of the Board of Directors of the Abu Dhabi Securities Exchange, said: “We congratulate Boroz on the great success of its initial public offering, and look forward to welcoming it as a listed public company. Abu Dhabi Securities Exchange and we are proud to announce that this offer is one of the largest IPOs in market history, which is an honorable achievement for us. Borouge provides an excellent example of the strong and global partnerships that Abu Dhabi continues to build and strengthen with its world-class partners, due to which the company has grown rapidly into a global leader in the petrochemical industry. We are proud of the key role that the market continues to play in Abu Dhabi’s efforts to diversify its economy, and will add to our efforts to attract world-class companies unique in their diversity of products and services. The greater the diversity of the market system and the greater the investment options it offers.

Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “Borouge’s initial public offering (IPO) has been a resounding success and we are proud of the company’s acceptance of investors at the regional and international levels, beginning with the first trading day of the company’s shares on the Abu Dhabi Securities Exchange. It is a clear testament to the strength of investment plans and our future and strategic plans.We look forward to welcoming new partners and continuing to focus on implementing the company’s strategy of creating an innovative Polyolefins manufacturing base and paving the way for success and growth in the petrochemical industry.

Founded in 1998 as a joint venture between ADNOC and Borealis, Borouge is one of the world’s leading provider of innovative and diversified solutions of high value polymers for sectors including agriculture, construction, construction, energy, packaging, advanced packaging and transportation. And health ..

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Borouge aims to provide investors with an exceptional opportunity to acquire shares in one of the world’s leading companies in the petrochemical industry by completing the public offering of its minority stake.

The company expects to distribute $ 975 million in dividends to shareholders for fiscal 2022. Announced the share price of the offer.

The main axes of Borouge’s strategic development plan are to achieve continuous growth in its product portfolio through innovation, sustainable solutions delivery, product development, access to strategic markets and geographical expansion.

The company focuses on delivering its diverse range of products and innovative industrial solutions to the ultimate markets offering the best prices, and also benefits from Borealis Borstar technology, which enables Borouge to design and make significant contributions to tailor-made specialized solutions to meet the needs of its customers. To make everyday life easier.

Over the past six years, ADNOC has implemented an effective plan to manage its business and capital portfolio and has developed a model of innovative, highly open and flexible strategic partnerships in all aspects of the value chain of its research, development, manufacturing and refining. , Manufacturing, marketing and petrochemical business

ADNOC plans to implement a $ 127 billion (equivalent to 466 billion dirhams) capital investment plan in all group companies between 2022-2026.

Borouge employs more than 3,100 people at Borouge ADP and Borouge Pte Ltd, and delivers its products to customers in more than 50 countries in Asia, the Middle East and Africa. ADNOC will be at the end of the listing process, which will hold a 54% stake in Borouge, while Borealis will retain a 36% stake in Middle East.