ADNOC announces offer price for IPO of Borouge

The Abu Dhabi National Oil Company (ADNOC), along with its long-standing partner Borealis AG, today announced the offer price for the initial public offering (IPO) of Borouge plc on the Abu Dhabi Securities Exchange (ADX), the company’s joint venture in the petrochemical sector. According to the price per share announcement, the Borouge IPO will be valued at AED73.6 billion ($20 billion), making it the largest listing in Abu Dhabi’s history.

ADNOC announces offer price for IPO of BorougeIn the lead up to today’s subscription period, ADNOC and Borealis (Selling Shareholders) engaged with investors and viewed strong indications of demand from local and international investors. Borouge and the Selling Shareholders signed 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).

Approximately AED2.1 billion ($570 million) has been committed to the IPO by these high-quality Cornerstone Investors directly or indirectly, subject to a six-month lock-up period. The IPO subscription period has commenced today (23rd May, 2022), closing to retail investors on 28th May, 2022, and to qualified institutional investors on 30th May, 2022. Listing on the ADX is expected to take place on 3rd June, 2022. Borouge has a robust financial profile, with revenue of $5.5 billion in 2021 and a profit of $1.5 billion in its ADP business. This is based on a record of highly effective cash flow generation that ensures the company can pay dividends competitively in the years to come.

The Company expects to distribute $975 million in dividends to shareholders in 2022. Borouge expects to pay no less than $1.3 billion in dividends in 2023, equivalent to a 6.5% yield based on the price per share announced for the offering. The Selling Shareholders believe the offer price represents a highly attractive value proposition for investors, which reflects their long-term confidence in Borouge’s growth trajectory. It reflects ADNOC’s commitment to a supportive aftermarket performance post-listing as well as a robust dividend policy.

With the debut of the Borouge IPO, ADNOC offers investors another excellent opportunity to invest in an organization that will play a vital role in Abu Dhabi’s sustainable growth. Founded in 1998, Borouge combines the strengths and experience of ADNOC and Borealis through Borouge ADP, its Operations joint venture, headquartered in Abu Dhabi. It also has Borouge PTE, its Sales and Marketing joint venture, headquartered in Singapore. Borouge offers innovative and differentiated polyolefin solutions for agriculture, infrastructure, energy, advanced packaging, mobility, and healthcare. With over 3,100 employees, the Company serves customers in over 50 countries in Asia, the Middle East, and Africa.