July 5, 2022

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"ADNOC" sets the subscription price for "Borouge" at 2.45 dirhams

“ADNOC” sets the subscription price for “Borouge” at 2.45 dirhams

Abu Dhabi National Oil Company (ADNOC) and its strategic partner, Borealis, announced in the Abu Dhabi Stock Exchange that the petrochemical joint venture Borouge’s IPO share (offering price) was 2.45 dirhams per share. The market value of the company is 73.6 billion dirhams ($ 20 billion), the largest list ever on the Abu Dhabi Securities Exchange.

Prior to the official subscription period yesterday, the subscription price was set by ADNOC and Borealis as sales partners, following strong initial demand indicators from local and international investors.

The IPO period for “Borouge” began yesterday, May 23, 2022, and will end on May 28 for individual investors in the UAE and May 30, 2022 for qualified investors in local and international companies. Borouge is expected to be listed on the Abu Dhabi Securities Exchange on June 3, 2022.

Primary investors

As another strong indicator of support for the supply chain and demand from investors, “Sales Partners” and the company concluded key investment agreements: “International Holding Company”, “Multiplay Group”, “Alpha Abu Dhabi Holding”, “Holding”, “Fund” Abu Dhabi Pension, Investment Commission, Adani Group of India (major investors).

In accordance with these agreements, the major investors in each case pledged to invest directly or indirectly 2.1 billion dirhams (equivalent to $ 570 million) in the public offering, with all shares subject to a minimum retention period of at least 6 years. Months.

Strong file

With $ 5.5 billion in annual revenue in 2021, Borouge has a strong financial profile, and one of its two companies, Borouge ADP, has annual profits of $ 1.5 billion and a proven track record of achieving strong cash flow. Supports its ability to distribute competitive dividends in the future.

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The company expects to distribute $ 975 million to shareholders by 2022, and expects to pay at least $ 1.3 billion for the full year by 2023, equivalent to 6.5% dividend returns based on the announced share price. Offering.

Exceptional opportunity

ADNOC aims to provide an exceptional opportunity for investors to contribute to a public offering of a minority stake in Borouge, a leading player in Abu Dhabi Emirate and the UAE in general, which plays a key role in achieving sustainable growth. .


“Multiplay” panel

Multiplay Group, an Abu Dhabi-based holding company, has announced a major investor agreement to buy shares in Borouge’s initial public offering for a total of 183.75 million dirhams ($ 50 million).

Samia Poussa, CEO and General Manager, Multiplayer, said the investment confirms the group’s confidence in the Abu Dhabi market, which has maintained a strong momentum in the capital market despite challenges in the global economy. Emirate’s economic growth Abu Dhabi, the evolution of the market and its increased flexibility.

«International Holdings

The international holding company has announced that it has invested 183 million dirhams in Borouge’s initial public offering.

Saeed Basr Shuaib, CEO and Managing Director of “International Holdings”, said: Its investment portfolio. He added, “With the growth of capital markets in the region, we have all the materials and capabilities to qualify for better opportunities, such as investing in the initial public offering of the petrochemical sector (Borouge).”

Capital Investment Plan

ADNOC plans to implement a $ 122 billion (447.7 billion dirhams) capital investment plan in all group companies between 2021-2025.

It also plans to expand its investor base by offering minority stakes in companies selected from its group of operating companies. It began with an initial public offering of “ADNOC Distribution” in 2017, followed by a listing of “ADNOC Drilling” shares in October 2021. This is the biggest offer in the Abu Dhabi market, and to date, Vertiglobe has been offering shares to securities.

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முக்கிய Major investors in the subscription are committed to investing 2.1 billion dirhams.

சந்த The subscription period for individual investors ends on May 28 and for eligible institutional investors on May 30, 2022.


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