ADNOC delivers fourth consecutive record-setting IPO on ADX

Abu Dhabi National Oil Company (ADNOC), together with Borealis, listed their petrochemicals joint venture Borouge, 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 $2bn for the offering of 10 per cent of the company’s total issued share capital, attracted total gross demand of more than $83.4b and was almost 42 times oversubscribed in aggregate. The retail offering, which attracted higher retail demand than any UAE IPO in nearly 20 years, was 74 times oversubscribed.

Borouge’s shares began trading at Dhs2.45, implying a market capitalisation for the company of $20.05b at the time of listing. Borouge is the fourth company that ADNOC has brought to market since 2017 and follows the highly successful IPOs of ADNOC Distribution, ADNOC Drilling and Fertiglobe.

Read: Borouge’s $2bn Abu Dhabi IPO draws $83bn of orders

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC MD 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.”

Our MD and GCEO H.E. Dr Sultan Al Jaber and Borealis CEO Thomas Gangl rang the opening bell at @ADX_AE to mark the listing of @Borouge – Abu Dhabi’s largest-ever IPO to date. pic.twitter.com/uF3QG9O9jA

— ADNOC Group (@AdnocGroup) June 3, 2022

“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 global investment destination of choice,” he added.

Thomas Gangl, Borealis of CEO commented, “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 towards its next milestone, Borouge 4, 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.”

Hisham Khalid Malak, chairman of the ADX, commented, “We congratulate Borouge on their successful IPO, and we are excited to welcome them on the Abu Dhabi Securities Exchange as one of the largest IPOs in the history of our dynamic exchange, marking yet another immense milestone for us. Borouge is a prime example of the strong and global partnerships that Abu Dhabi continues to foster, which have led to Borouge going from strength to strength as a leading petrochemicals firm. ADX is proud of the central and pivotal role it continues to play in Abu Dhabi’s economic diversification efforts as we seek to attract further world-class companies that deliver a wide range of products and services and add diversification to our growing offering and capital market ecosystem.”

Hazeem Sultan Al Suwaidi, CEO of Borouge, said, “We are proud to have completed this highly successful IPO and to begin our first day of trading on ADX. Borouge has seen exceptionally strong demand from regional and international investors, with significant cornerstone commitments from high-quality investors, a clear indicator of the strength of our investment thesis and strategic roadmap. We are excited to welcome our new shareholders, and we will continue to focus on driving our strategy to grow our innovative polyolefins platform and lead the petrochemical industry transition.”

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 $975m for the fiscal year 2022; and to pay a dividend of no less than $1.3b for fiscal year 2023, equivalent to a 6.5 per cent dividend yield based on the offer share price.

Also read: Abu Dhabi’s ADNOC Distribution reports Dhs671m in net profit for Q1 2022