Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it secured seven cornerstone investors, including India's wealthy Adani family for its USD2 billion initial public offering (IPO), said Reuters.
Borouge, a joint venture between Abu Dhabi National Oil Company (Adnoc) and Austrian chemical producer Borealis, on Monday said it secured seven cornerstone investors, including India’s wealthy Adani family for its USD2 billion initial public offering (IPO).
The Abu Dhabi-headquartered petrochemicals firm, which set the offer price for its IPO at Dh2.45 (USD0.67) a share, said it secured a total commitment of about Dh2.1 billion ($570 million) from Abu Dhabi state holding firm ADQ, the Abu Dhabi Pension Fund, the Emirates Investment Authority, India’s Adani family and entities controlled by International Holding Company, Multiply Group and Alpha Dhabi. The investment from the cornerstone investors is subject to a minimum six month lock-up period.
Analysis and market experts termed the IPO price very attractive for investors and said the IPO is bound to oversubscribed multiple times. They said the government may increase the IPO size and avail greenshoe option amid considering a very encouraging response from the market.
“Books for the initial public offering were covered in about an hour after opening,” a bookrunner on the deal said. The petrochemicals firm will list 10 per cent of its shares, or more than three billion ordinary shares, on the second biggest stock market of the region. The expected date of listing on the ADX is June 3, 2022.
Borouge, established in 1998, Borouge manufactures plastics used in everything from automobiles and food packaging to medicine vials and piping systems. The company’s main plant is in Abu Dhabi and it employs more than 3,000 people and serves customers across the Middle East, Africa and Asia.
We remind, Borealis (Vienna), a leading producer of polyolefins, has delayed the start-up of a new, world-scale propane dehydrogenation (PDH) plant at its existing production site at Kallo, Belgium, which is the company's biggest investment in Europe, until Q3 2023, citing Covid-19. The plant in Kallo in the port of Antwerp was previously targeted to begin operations by the end of next year.
Borealis is owned by OMV AG and Mubadala Investment Co., the Abu Dhabi state investment company. Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries.
mrchub.com