Borouge, the strategic joint venture between Abu Dhabi National Oil Company (ADNOC) and Borealis AG, one of the world’s leading providers of innovative and differentiated polyolefin solutions, has listed on the Abu Dhabi Securities Exchange (ADX), following the completion of Abu Dhabi’s largest-ever Initial Public Offering (IPO) and the Middle East’s largest-ever petrochemicals listing.
The IPO, which raised gross proceeds of more than $2.0 billion for the offering of 10% of the Company’s total issued share capital, attracted total gross demand of more than $83.4 billion and was almost 42 times oversubscribed in aggregate. The retail offering (comprising Tranche 1 and Tranche 3), which attracted higher retail demand than any UAE IPO in nearly 20 years, was 74 times oversubscribed. Borouge’s shares were priced and sold in the IPO at AED 2.45, implying a market capitalization for the Company of $20.05 billion at the time of listing.
Founded in 1998, Borouge is one of the world’s leading providers of innovative and differentiated polyolefin solutions for the agriculture, infrastructure, energy, packaging, mobility and healthcare industries. With the landmark IPO offering local and international investors the opportunity to own shares in one of the world’s leading petrochemical players, Borouge expects to pay a dividend of $975 million for the fiscal year 2022; and to pay a dividend of no less than $1.3 billion for fiscal year 2023, equivalent to a 6.5% dividend yield based on the offer share price.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Borouge Chairman said, “ADNOC is delighted to have delivered today’s truly record-setting IPO of Borouge, which marks Abu Dhabi’s largest-ever market debut. With exceptional demand from local retail and institutional investors as well as the global institutional investor community, this historic listing is the fourth company we have successfully brought to market.”
“This IPO demonstrates our ongoing contribution to support the diversification of Abu Dhabi’s buoyant and dynamic equity capital market and reinforces ADNOC’s continued role as the critical enabler of growth and expansion of the UAE economy and private sector, and in solidifying Abu Dhabi’s position as a global investment destination of choice.”
“As part of our ongoing value creation program, we will continue to unlock opportunities to expand our investor base and access to capital, while providing domestic and international investors with the opportunity to invest and partake in the growth of our world-class portfolio of energy assets. Working closely with our long-standing strategic partner Borealis, ADNOC will remain a committed majority shareholder in Borouge, and we look forward to delivering sustainable growth and long-term benefits for Abu Dhabi, the UAE, and our shareholders,” added Al Jaber.
Thomas Gangl, CEO of Borealis said, “The extraordinary subscription numbers and interest in becoming a shareholder of Borouge underpin the attractiveness of the company and the growth path Borealis and ADNOC have been embarking on successfully over the years. The successful IPO facilitates the expansion of the Group and the ongoing efforts in providing innovative and differentiated polyolefin solutions. Borealis, together with its long-standing partner ADNOC, continues to be a proud shareholder and welcomes the new shareholder base and opportunity for investors to participate in the attractive journey ahead for the company.”
Upon listing, ADNOC owns a majority 54% stake in Borouge, with Borealis holding 36% via its wholly-owned subsidiary Borealis Middle East Holding GmbH.