Abu Dhabi’s Borouge to sell 10% of its shares in an IPO and list on ADX

Abu Dhabi’s Borouge to sell 10% of its shares in an IPO and list on ADX

DUBAI: Abu Dhabi National Oil Company (ADNOC) and its Austrian chemicals partner Borealis plan an initial public offering of their petrochemicals joint venture Borouge, the latest step in the Abu Dhabi state energy group's asset monetisation programme.

Borouge, which is a specialty plastics firm that produces polyolefins, said on Wednesday it planned to float and list its shares on the Abu Dhabi Securities Exchange (ADX).

The company, whose products are used in items such as cars and food packaging, said its offering will consist of approximately 3 billion existing shares, representing 10% of the company's issued share capital.

The offering will begin May 23 and run to May 28 for retail investors and May 30 for institutional buyers, the company said in an intention to float (ITF) document. It expects its shares to be admitted for trading on the ADX on June 3.

Borouge said it plans to pay dividends to its shareholders biannually, and its ability to pay will depend on factors such as its capital expenditure plans and market conditions.

For the financial year 2022, it plans to pay a dividend in September of $325 million and a further $650 million the following March. For the financial year 2023, it said it plans