ADNOC delivers blockbuster IPO, largest-ever listing to date

ADNOC delivers blockbuster IPO, largest-ever listing to date

Abu Dhabi National Oil Company (ADNOC) together with its long-standing partner Borealis AG today announced the successful completion of the bookbuild and public subscription process for the Initial Public Offering (IPO) of Borouge plc, their petrochemicals joint venture, on the Abu Dhabi Securities Exchange (ADX).

The offering of 3,005,769,158 ordinary shares (Offer Shares), equivalent to 10% of total issued share capital, and an offer price of AED2.45 per ordinary share, results in gross proceeds of over $2 billion to ADNOC and Borealis, together the "Selling Shareholders", upon settlement.

The Offering was significantly oversubscribed and experienced overwhelming demand from UAE Retail Investors and Qualified Institutional Investors. Total gross demand for the IPO amounted to over $83.4 billion, implying an oversubscription level of almost 42 times in aggregate.

The book was covered within less than one hour of the start of the public subscription process, with the Offering seeing the highest subscription levels by UAE retail investors in any UAE IPO in almost two decades, with total demand of over $17.9 billion.

It also marked the largest demand for an ADNOC company IPO to date.

The expected date of listing on the ADX is 3rd June 2022. Upon listing, ADNOC will continue to own a majority 54% stake in Borouge, while Borealis ME will hold 36%.

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.

Borouge will also benefit from ADNOC’s recent equity investment in Borealis, which further expands ADNOC’s long-standing partnership with Borealis while accelerating the delivery of ADNOC’s broader Downstream and Industrial growth program. ADNOC is well-positioned to capitalise on growth opportunities in the chemicals and petrochemical sector globally, building on its world-class refining and petrochemicals facilities in Al Ruwais Industrial City, Abu Dhabi.

ADNOC has already embarked on a major expansion drive in this space, including the recently announced Borouge 4 complex and the TA’ZIZ Industrial Chemicals Zone in Ruwais.

News Source: Emirates News Agency

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