ADNOC and its partner Borealis AG have announced the completion of bookbuild and public subscription for the IPO of Borouge, which is their petrochemicals joint venture, on the Abu Dhabi Securities Exchange (ADX).
The offering of 3,005,769,158 ordinary shares (Offer Shares), equivalent to 10 percent of total issued share capital, and an offer price of AED2.45 per ordinary share, results in gross proceeds of over $2 billion to ADNOC and Borealis.
The offering was oversubscribed 42 times on overwhelming demand of over $83.4 billion.
The book was covered within less than one hour of the start of the public subscription process, with the offering seeing the highest subscription levels by UAE retail investors in any UAE IPO in almost two decades, with total demand of over $17.9 billion.
It also marked the largest demand for an ADNOC company IPO to date.
The expected date of listing on the ADX is 3 June 2022. Upon listing, ADNOC will continue to own a majority 54 percent stake in Borouge, while Borealis ME will hold 36 percent.
Borouge is the fourth company that ADNOC has brought to market since 2017 and follows the successful IPOs of ADNOC Distribution, ADNOC Drilling and Fertiglobe.
Borouge had a full-year revenue of $5.5 billion in 2021 and profit for the year of $1.5 billion for its ADP business only.
For 2022, the company expects to pay $975 million in dividends to shareholders. In 2023, Borouge expects to pay no less than $1.3 billion for the full-year period, equivalent to a dividend yield of 6.5 percent based on the price per share announced for the Offering.