On Sunday, multiply Group, a technology-focused holding company based in Abu Dhabi, announced it has agreed to purchase shares in the Initial Public Offering of Borouge for a total amount of $50m as a cornerstone investor.
Multiply plans to make this investment at the final offer price set by Borouge.
“Our investment underpins our confidence in the Abu Dhabi market which has maintained strong momentum in its capital market despite the ongoing global economic uncertainty,” Samia Bouazza, CEO and Managing Director at Multiply Group, said. “We see this momentum continuing on the back of solid economic growth in Abu Dhabi and ADX’s growing depth, resilience and sophistication.”
Bouazza said there is real and tangible demand for the many types of innovative solutions being produced using the latest technologies by Borouge across different industries such as healthcare, mobility, agriculture and infrastructure especially in developing countries where it is concentrating its next phase of expansion.
“Borouge has grown into one of the world’s largest, sustainably producing polymer manufacturers, increasing its production by 10 times since 2001, reaching $5.5 billion in revenue in 2021,” Borouge said. “We expect this growth to continue, on the back of global population growth and urbanization, especially for recyclable solutions. This key focus on ESG principles is a very important factor in our own investment thesis.”
This investment is also an opportunity to partner with ADNOC Group, which is set to play a vital role in the growth of Abu Dhabi and the UAE.
Borouge has adopted a comprehensive sustainability agenda focusing on promoting a zero-waste plastics circular economy. It aims to reduce its Scope 1 emissions by 25 percent, its energy intensity by 30 percent and continuous flaring by 100 percent by 2030.
The last 12 months has seen the Group make investments of $100m in DEWA as a cornerstone investor in its IPO, alongside digital and ecommerce platforms with substantial earning potential and international high growth firms, including US vehicle-focused digital media platform Firefly, global visual content firm Getty Images, Rihanna’s direct-to-consumer e-commerce fashion firm Savage X Fenty, PAL Cooling Holding, Emirates Driving Company, and Viola Communications.
Multiply recently posted its Q1 2022 financial results, achieving a net profit of AED 334.9 million.