Adnoc, Borealis seek $2bn from IPO of plastics JV

Adnoc, Borealis seek $2bn from IPO of plastics JV

Abu Dhabi National Oil company (ADNOC) and Borealis AG are seeking to raise about $2bn from an initial public offering of their plastics joint venture, according to people familiar with the matter. The state-owned energy company and Austrian chemicals producer plan to sell a 10 per cent stake in their Borouge plastics unit by the end of the quarter, the people said, declining to be identified as the information is private. The sale would value Borouge at about $20bn and could be announced as early as next month, they said. Discussions are ongoing and no final decisions on the timeframe have been taken, the people said. A representative for Adnoc declined to comment, while a spokesperson for Borealis said the firms are considering options for Borouge, including an IPO, and will update the market when appropriate. Earlier this month, Dubai’s main utility raised $6.1bn in the world’s second-biggest initial public offering this year. Oil surged to a seven-year high after the Ukrainian crisis and prices remain at over $100 a barrel, boosting Gulf economies and bolstering earnings for companies in the energy industry. Regional chemicals and plastics producers like Borouge and Fertiglobe that can tap lower-cost natural gas have also