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FIRM VALUED AT $20bn

Borouge IPO price set; biggest to list on ADX

ABU DHABI, May 23, 2022

Abu Dhabi National Oil Company (Adnoc), together with its long-standing partner Borealis AG, today set an offer price of AED2.45 ($0.66) per share for the initial public offering (IPO) of Borouge, their petrochemicals joint venture on the Abu Dhabi Securities Exchange (ADX).
 
This makes the Borouge IPO the largest-ever listing to date in Abu Dhabi’s history and  implies an equity valuation of AED73.6 billion ($20 billion) of the company.
 
The offering consists of 3 billion existing shares, representing 10 per cent of Borouge’s issued share capital.
 
The offer price was determined by Adnoc and Borealis (selling shareholders) following investor engagement that saw significant strong initial demand indications from both local and international investors ahead of the start of the subscription period today.
 
The selling shareholders and Borouge have entered into cornerstone investment agreements with International Holding Company, Multiply Group, Alpha Dhabi Holding, ADQ, Abu Dhabi Pension Fund, Emirates Investment Authority, and the Adani Family.
 
These high-quality cornerstone investors have, either directly or indirectly, made a combined commitment of approximately AED2.1 billion ($570 million) to the IPO, subject to a minimum six-month lock-up period.
 
The IPO subscription period has commenced today (May 23), closing to retail investors on 28th May, 2022, and to qualified institutional investors on 30th May, 2022. The expected date of listing on the ADX is June 3.
 
Borouge has a robust financial profile, with full-year revenue of $5.5 billion in 2021 and profit for the year of $1.5 billion for its ADP business only, with a very strong cash flow generation record that supports its capacity to pay highly competitive future dividends. For 2022, the company expects to pay $975 million in dividends to shareholders. In 2023, Borouge expects to pay no less than $1.3 billion for the full-year period, equivalent to a dividend yield of 6.5% based on the price per share announced for the offering, the company said.
 
The selling shareholders believe the offer price per share provides investors with a highly attractive value proposition that reflects their long-term confidence in Borouge’s growth trajectory. This decision also reflects Adnoc’s prioritisation of a supportive aftermarket performance post-listing and robust dividend policy, a statement said.
 
Through the Borouge IPO, Adnoc is offering investors another highly compelling investment opportunity to invest alongside Adnoc in a company that is set to play a vital role in sustainable growth for Abu Dhabi and the UAE, it said.
 
Borouge, established in 1998, combines the strength and experience of Adnoc and Borealis, through Borouge ADP, its operations joint venture, headquartered in Abu Dhabi and Borouge PTE, its sales and marketing joint venture, headquartered in Singapore. 
 
Today, Borouge is one of the world’s leading providers of innovative and differentiated polyolefin solutions for the agriculture, infrastructure, energy, advanced packaging, mobility and healthcare industries. The Company employs over 3,100 people and serves customers in more than 50 countries across Asia, the Middle East and Africa. 



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