July 5, 2022

Dubai Week

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ADNOC has reached the milestone of completing the largest initial public offering in Abu Dhabi

Abu Dhabi National Oil Company, ADNOC and its strategic partner, Borealis, on Tuesday announced the successful completion of price construction and the completion of the subscription process for their petrochemical joint venture Borouge on the Abu Dhabi Stock Exchange.
Sharjah 24 – WAM:

Abu Dhabi National Oil Company (ADNOC) and its strategic partner Borealis announced on Tuesday the successful completion of the share price bidding process for their petrochemical joint venture in Abu Dhabi, Borouge, and the completion of the subscription process. The stock market.

At a price of 2.45 dirhams per share, the issuance of 3,005,769,158 public shares, representing 10% of the company’s capital, brought total revenue to ADNOC and Borealis through a settlement of more than $ 2 billion in so-called “selling partners”.

The subscription was closed several times and saw strong demand with great demand from individual investors and qualified investors in the UAE.

The total demand for the initial public offering was more than US $ 83.4 billion, which is 42 times the total subscription target value.

The subscription was paid within an hour of the start of the public offering process, which saw the highest demand by private investors in the UAE statewide in two decades, with total demand exceeding $ 17.9 billion. The subscription reflects the greatest demand for “ADNOC”‘s initial public offering to date.

Borouge is the fourth company to issue ADNOC shares to the market since 2017, following the successful initial public offerings of ADNOC Distribution, ADNOC Drill and Fritglobe.

Borouge has a strong financial profile with $ 5.5 billion in annual revenue in 2021, and one of its two companies, Borouge ADP, has an annual profit of $ 1.5 billion. It also has a proven track record of creating strong cash flows. Its ability to distribute dividends will compete in the future.

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The company expects to disburse $ 975 million to shareholders in 2022, and expects to pay at least $ 1.3 billion for the full year in 2023, based on the declared share price of the offering equivalent to 6.5% dividend.