Abu Dhabi Borouge’s $2 billion IPO set to be ADX’s biggest

Abu Dhabi Borouge’s $2 billion IPO set to be ADX’s biggest

Abu Dhabi-based petrochemicals company Borouge raised more than $2 billion on Tuesday after demand for its initial public offering topped $83.4 billion.

The shares are due to start trading on the Abu Dhabi Securities Exchange (ADX) on Friday under the symbol BOROUGE, the largest listing to date on the exchange which has seen a string of IPOs in the last two years.

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Gulf issuers have raised more than $10 billion from IPOs so far this year, Refinitiv data shows, exceeding European flotations even as global markets remain volatile in the wake of the conflict in Ukraine.

Borouge last week set the offer price for its IPO, indicating it could raise $2 billion in the deal and giving the company an implied equity value of $20 billion.

The company is owned by Abu Dhabi National Oil Company (ADNOC) and Austria’s Borealis. Following the IPO, ADNOC will continue to hold a 54 percent majority stake and Borealis will own 36 percent.

Of the 10 percent of Borouge offered, 88 percent was earmarked for institutional investors, who placed orders of about $65.5 billion.

Among them were roughly $570 million in cornerstone investments from Abu Dhabi