Abu Dhabi’s Borouge IPO Opens at Dh2.45/share, Biggest IPO to Date

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UAE’s Abu Dhabi National Oil Co. (Adnoc) and Austria’s chemical producer Borealis AG have set an offer price of Dh2.45 ($0.67) per share for its petrochemicals joint venture Borouge’s IPO, set to be the biggest ever listing in the country’s capital.

Borouge IPO
Source: Twitter

The UAE’s biggest oil company and Vienna-based Borealis AG are selling 3 billion shares in Borouge, which is equivalent to 10% of the firm. 

According to the specialty plastics maker’s statement, offer price implies an equity valuation of approximately $20 billion for the firm.

Borouge’s IPO has already attracted seven cornerstone investors who agreed to subscribe for $570 million worth of shares. Among these investors are the Indian conglomerate Adani Group which committed $75 million, and Abu Dhabi wealth fund ADQ that committed $120 million and Alpha Dhabi Holding that will buy shares worth $100 million.

The IPO subscription period commences on May 23 and runs until May 28 for UAE retail investors, and ends on May 30 for institutional investors. The petrochemicals giant is expected to start trading on June 3.

The joint global coordinators of this IPO are Citigroup Inc., First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley.

The Abu Dhabi-based joint venture was founded in the late 1990s, and specializes in manufacturing plastics used in various sectors.