Offer price for Abu Dhabi’s largest ever listing set at Dhs2.45 per share

Offer price for Abu Dhabi’s largest ever listing set at Dhs2.45 per share

Abu Dhabi National Oil Company (ADNOC) and Borealis have announced the offer price for the initial public offering (IPO) of Borouge, their petrochemicals joint venture. The price per share for the offering to be listed on the Abu Dhabi Securities Exchange (ADX), has been set at Dhs2.45, implying an equity value of Dhs73.6bn ($20bn). This makes the Borouge IPO the largest-ever listing to date in Abu Dhabi’s history. The offer price was determined by ADNOC and Borealis (selling shareholders) following investor engagement that saw strong initial demand indications from both local and international investors, official news agency reported. On May 22, 2022, the selling shareholders and Borouge entered into cornerstone investment agreements with entities controlled by International Holding Company, Multiply Group, and Alpha Dhabi Holding, who have committed to subscribe for shares in the offering valued at $50m; $50m; and $100m respectively, a regulatory announcement on Borouge’s website revealed. Furthermore, ADQ has committed $120m; Abu Dhabi Pension Fund has committed $100m; Emirates Investment Authority has committed $75m; and the Adani Family has committed $75m, in each case, directly or indirectly, as subscription amounts for shares in the offering. All of the investors have committed to purchases shares at the offer