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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.

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Copper shortage threatens global green energy transition |



Copper shortage threatens global green energy transition |

Paris – The long global path to carbon neutrality to replace energy systems dependent on fossil fuels runs into a pitfall: the transition requires more copper than companies can currently produce.

Supply in the world copper market is expected to record a shortfall of up to six million tonnes relative to demand in the medium term, raising concerns about the energy transition.

Experts consider the red metal, which has not received enough attention in the past four years, to be a vital artery for energy networks, electrical equipment and other resources and industries, and a key means of reducing greenhouse gases.

Nexans Group Operations Director Vincent Desalle says: “If you want to transfer energy within a car or a building or between a production plant and a point of consumption, you have to send electricity, and currently we don’t have any. Better than copper, with acceptable cost and durability.”

Desalle confirmed to Agence France-Presse that the world was forced to rely on electricity to reduce greenhouse gas emissions, which increased demand for copper.

Europe, in particular, wants to reduce carbon dioxide emissions by 55 percent by 2030 compared to 1990. At the same time, developing countries are turning to electricity.

The International Energy Agency, which is organizing a summit on minerals critical to the energy transition this week, confirms that the copper market will see growth of about 50 percent between 2017 and 2022, reaching about $200 billion.

Diesel explained that two decades ago the world consumed 9 to 10 million tons of copper, and now its consumption is 23 to 24 million tons, which means the number has doubled.

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“We believe that in just ten years, global consumption will reach 35 to 40 million tonnes,” he said.

A study by Standard & Poor’s Global last February indicated that annual demand will double and reach 50 million tonnes by 2035, and that assumes sufficient red metal is available, which of course is not.

Copper is a relatively abundant electrical conductor, has no better substitute, and can be found in all kinds of products, from toasters to air conditioners, computer chips, smartphones and electric cars.

Diesel pointed out that in addition to the many cables needed to connect offshore wind turbines to power grids, a battery-powered car typically requires twice the amount of copper as a conventional car.

It’s unclear whether the usually cautious mining sector will absorb the scale of investment needed to meet the world’s needs, while faltering means the energy transition program could be derailed.

Laurent Soccoli of the International Copper Association, which includes mining companies and smelters and represents 50 percent of the world’s tonnage of copper produced, pointed out that the data pointed to the possibility of a “supply shortfall” for several years.

He stressed that the shortage was not yet due to “various reasons, including the development of prices and (copper’s) periodic replacement”.

Due to the tremendous growth in demand, he said, “we will face a problem with a shortfall of around 5 to 6 million tonnes in the early 2030s”.

Several ways to avoid shortages in the copper market have been mentioned, including the use of aluminum, which is a good conductor of electricity and does not see a shortage of resources, but its supply chain poses difficulties.

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According to Desalle, “Its production requires three different stages, and they are not always in the same geographical areas.”

Aluminum production uses a large amount of energy and leads to carbon emissions, so its price depends on energy prices.

He added, “Finally, there is a geopolitical element, which is that Russia, one of the world’s largest aluminum producers, has created additional restrictions on this market.”

As a way to avoid shortages in the copper market, the issue of recycling it is often mentioned among some experts and companies in the field.

The International Copper Association estimates that 40 percent of this metal is currently recycled, representing “one-third of the annual supply.” The importance of this method is increasing in industrialized countries.

According to Shokwali, while full copper recycling is difficult to envision in the long term, since it is often buried in the ground or in buildings, the 40 percent rate could be increased “through aggregate collection methods and improved copper separation techniques.”

Forecasts show that supply growth will peak in 2024 as fewer new mining projects come online and existing copper resources dry up.

Goldman Sachs analysts estimate that mining companies will need to spend nearly $150 billion over the next decade to deal with a shortfall of up to eight million tons.

According to the Global Copper Research Group, the global copper deficit in 2021 was 441 thousand tons, which is less than two percent of the demand for the refined metal.

Standard & Poor’s Global’s current worst-case scenario projections indicate a deficit equivalent to twenty percent of consumption by 2035.

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Abu Dhabi Securities Exchange enters into a partnership with BNY Mellon to expand custodial services globally



Abu Dhabi Securities Exchange enters into a partnership with BNY Mellon to expand custodial services globally

ABU DHABI: The Abu Dhabi Securities Exchange, one of the world’s fastest growing financial markets, has appointed BNY Mellon, the world’s largest hedge bank, to support the dual listing of global companies on the Abu Dhabi Securities Exchange.

Through this collaboration, the bank will act as a link between the Abu Dhabi Securities Exchange and the International Securities Depository Institutions (ICSD), enabling the market to benefit from BNY Mellon’s global presence.

This initiative is part of ADX’s strategy to work with internationally recognized global capital markets institutions to develop innovative solutions that help improve the market’s infrastructure and capabilities. This collaboration with BNY Mellon will enable international issuers to dual-list their securities, starting in the US and expanding to other countries. Also, the market will provide investors with new investment opportunities in global markets.

On this occasion, Abu Dhabi Securities Exchange CEO Abdullah Salem Al Nuaimi said: “We are pleased to collaborate with BNY Mellon to strengthen our relationships with international securities depositories and facilitate dual listing in our fast-growing financial market. Our partnership with BNY Mellon, the world’s largest custodian, supports our strategy to drive innovation in our infrastructure, which will provide investors with a wide range of unique growth opportunities. Financial market in the region.

For his part, Hani Kiblawi, President of BNY Mellon International, said: “With our decades of presence in the region, we are pleased to work with a leading financial market such as the Abu Dhabi Securities Exchange to help investors have broad access to financial instruments.” Globalism. We focus on simplifying market complexity and connecting the financial system through innovative products and services that meet the needs of customers worldwide, and our appointment by the Abu Dhabi Securities Exchange is a prime example of this.

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In recent years, the Abu Dhabi Securities Market has introduced several new initiatives to attract more investors and improve market liquidity. The most important of these initiatives are the launch of the Financial Derivatives Market in 2021 and the launch of FTSE Abu Dhabi Securities. Market 15 “Fadax 15” Index and “Fadax 15” Index. For futures contracts in 2022, it will be the first benchmark for futures contracts on the market’s financial derivatives platform.

#Corporate Data
– I finish –

About Bank of New York Mellon (BNY Mellon).

BNY Mellon is a global investment firm offering sophisticated and thoughtful investment and wealth management services in 35 countries as part of its financial services offering to institutions, companies and individual investors. As of December 31, 2022, BNY Mellon’s total assets under custody/management reached $44.3 trillion in the securities and/or administrative services sectors, while total assets under management reached $1.8 trillion. A bank can act as a single point of contact for customers who want to initiate, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate banking brand of Bank of New York Mellon Corporation (NYSE: BK).

About Abu Dhabi Securities Market:

The Abu Dhabi Securities Market was established on November 15, 2000, pursuant to Local Law No. (3) of 2000. Under this Act, the market enjoys legal personality, financial and administrative independence and necessary supervisory and administrative powers. Duties. On March 17, 2020, the Abu Dhabi Securities Market was converted from a public company to a public joint stock company in terms of Law (8) of 2020. Abu Dhabi Securities Market is affiliated with the Holding Company (ADQ). of the largest holding companies in the region. , Abu Dhabi has a broad portfolio of major companies operating in key sectors within the Emirate’s diversified economy.

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The Abu Dhabi Securities Market is a market for trading securities. Including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange-traded funds and other financial instruments approved by the UAE Securities and Commodities Authority. The Abu Dhabi Securities Exchange is the second largest market in the Arab region, and its strategy of providing sustainable financial performance with diversified income sources is in line with the guiding principles of the UAE’s “Preparing for 50” agenda. The National Plan outlines the UAE’s strategic development roadmap, which aims to create a vibrant, sustainable and diversified economy that positively contributes to the transition to a new global model of sustainable development.

For more information on Abu Dhabi Securities Exchange, please contact:

Abdul Rahman Saleh Al Khatib

Director of Corporate Communications and Digital Marketing

Email: [email protected]

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Emirates News Agency – Standard & Poor’s to WAM: UAE economy expected to grow 3% in 2023 and 4% in 2024



Emirates News Agency – Standard & Poor’s to WAM: UAE economy expected to grow 3% in 2023 and 4% in 2024

From/ Rami Sami..

ABU DHABI, September 26 / WAM / Standard & Poor’s Credit Ratings Agency (S&P) expects the UAE economy to grow by 3% in 2023, with the pace of growth rising to around 4% in 2024, with the main support of the non-profit sector being oil.

Analysts at Standard & Poor’s reported to the Emirates news agency WAM that the UAE government has implemented a broad set of economic and social initiatives over the past few years that will lead to long-term growth.

S&P analysts expect the emirate’s tourism sector to continue to grow by supporting the country’s hosting of major events, which will help it achieve its target of increasing visitor numbers to 40 million by 2030, and the number of hotel rooms to reach 250,000. Same period.

Analysts expect the UAE banking sector to continue to show strong fundamentals, see continued improvement in profitability and surpass pre-pandemic “Covid-19” levels supported by rising interest rates, while the real estate sector in Dubai will show greater resilience. Stable house prices in light of demand is a strong one amid expectations.

S&P’s sovereign ratings analyst Trevor Cullinan said the UAE economy is expected to grow by around 3% this year, and we expect expansion in the non-oil sector to be strong, with broad-based growth in the services and industrial sectors.

The economy of the UAE is expected to grow by around 4% next year, he said, due to the continued growth of the oil sector and non-oil sector, with many sectors contributing significantly to the growth of the country’s economy. , particularly in oil and gas, wholesale, industrial and real estate. , construction, financial services and real estate.

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In line with the “We Emirates 2031” vision, he expected the economic momentum of the non-oil economy to be supported by the influx of expatriates and tourists, positive sentiments of investors and consumers, in addition to the private sector. Aimed at increasing the volume of trade and increasing the share of tourism in the GDP, through collaboration… among all government agencies and institutions and the private sector to advance the development process.

Trevor Cullinan, The UAE government has taken a broad set of business and social initiatives over the past few years, which will lead to long-term growth as initiatives for residential and business are expected to attract skilled workers. Social initiatives can help improve the country’s position in the Middle East.

He said the UAE’s initiatives included allowing 100% direct foreign ownership of more than 1,000 commercial and industrial activities, along with a “bankruptcy” law that eased and provided individuals with financial problems by restructuring their debts. State in the field of ease of doing business, opportunity to re-borrow on easy terms to improve competitiveness.

He explained that the UAE’s initiatives include new visas, expanding the criteria for obtaining a golden residence visa for a period of 10 years, launching a green residence visa for five years, and allowing investors and businessmen to apply for work visas. A sponsor or host is required, and the initiation of a multiple-entry tourist visa for a limited period of five years, in addition to tourist visas for family groups.

Cullinan said the UAE’s recent efforts to improve the UAE dirham-denominated yield curve through the introduction of treasury bonds and instruments denominated in the local currency will lead to the development of local capital markets and expand funding sources for UAE companies and banks. , noted that the implementation of the UAE corporate tax system will contribute to the diversification of government revenue. Apart from the oil sector, the implementation of this tax is another step towards modernizing the business environment in the UAE and aligning it with international standards.

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For her part, S&P’s corporate rating analyst Tatiana Leskova expected the expansion of the tourism sector to support greater economic growth in the UAE, with Dubai Emirate succeeding in attracting 14.7 million international visitors by 2022, a doubling. What was achieved in 2022? In 2021, the number of visitors indicated this year could reach a peak of 16.7 million visitors in 2019 in 2023, while the Emirate of Abu Dhabi attracted 4.1 million hotel guests in 2022, an increase of 24%. From 2021 onwards.

The tourism industry in the UAE is expected to continue to grow, supported by key events such as the United Arab Emirates Conference of the Parties to Climate Change (COP28). The goal is to increase the number of visitors to 40 million by 2030, with the number of hotel rooms expected to reach 250,000 in the same period.

He pointed out that the emirates of Abu Dhabi and Dubai will lead the way in attracting business and tourism to the country, while other emirates such as Ras Al Khaimah and Sharjah are working to develop tourism sectors, which will increase diversity. Tourism offers in the country, especially the Emirate of Sharjah is Arab and Islamic culture and a family destination, it is safe, the Emirate of Ras Al Khaimah for its beautiful nature, recreational activities and authentic programs.

Tatiana Leskova expects the real estate sector in Dubai to show more flexibility with the expectation that house prices will stabilize in light of strong demand, noting that Dubai’s attraction for companies is evident in the increasing number of new business licenses.

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For his part, Dr. Said: Financial Institutions Ratings Analyst and Global Head of Islamic Finance at S&P, Muhammad Damak, said the banking sector in the UAE continues to show strong fundamentals, and profitability is expected to continue to improve and exceed pre-Covid-19 pandemic levels. Banks’ interests also benefit from technological advances.

He expects the capitalization of the UAE banking system to maintain its strength and benefit from improved internal capital formation, with UAE banks continuing to enjoy good financial and liquidity conditions and a good net external asset position, which protects them from downside pressures. An increase in the cost of global liquidity.

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