ADNOC and Borealis will list shares of their joint venture Borouge on the Abu Dhabi Securities Exchange (ADX) for $0.67 per share (AED 2.45) as part of its initial public offering, the companies announced. That means Borouge has an equity value of $20 billion (AED 73.6 billion), making the IPO Abu Dhabi’s largest to date.
The shareholders have cornerstone investment agreements in place with International Holding Company, Multiply Group, Alpha Dhabi Holding, ADQ, Abu Dhabi Pension Fund, Emirates Investment Authority, and the Adani Family, according to the UAE state news agency, WAM. The cornerstone commitments are worth $570 million (AED 2.1 billion).
The Selling Shareholders and Borouge 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 (the Cornerstone Investors).
The IPO subscription period started on 23 May and will close on 28 May for retail investors, remaining open to qualified institutional investors until 30 May. The listing is expected to take place on 3 June.
Borouge’s profile
Borouge reported FY 2021 revenue of $5.5 billion, and in 2022 expects to pay $975 million in dividends to shareholders. The company expects to pay a minimum $1.3 billion for the full year in 2023, equating to a dividend yield of 6.5% based on the price per share.
The company was established in 1998 and provides polyolefin solutions to industry including agriculture, infrastructure, energy, mobility, healthcare, and packaging. Borouge operates across 50 countries, with a workforce of more than 3,100 people.
