The Abu Dhabi-based petrochemicals company Borouge Plc, the joint venture between Adnoc and Austrian chemicals producer Borealis, successfully closed its $2 billion initial public offerings, the biggest share sale on the Abu Dhabi Securities Exchange that was about 42 times oversubscribed. Total gross demand for the IPO amounted to over $83.4 billion which also attracted India’s billionaire Adani family.
The company had set the price per share for its 10 percent float at Dh2.45 ($0.67), implying an equity value of about $20bn.
ADNOC will continue to own a majority of 54 percent stake in the company, while Borealis ME will hold a 36 percent stake.
The seven cornerstone investors who agreed to subscribe for $570 million worth of shares in IPO, including ADQ, Alpha Dhabi Holding, and the Indian billionaire Adani’s family, will collectively subscribe for 28.4 percent.
The company secured a total commitment of about $570 million from seven strategic investors to anchor the public offering, Borouge said last week.
Abu Dhabi’s International Holding Company committed a $50m investment, while Multiply and Alpha invested $50m and $100m, respectively.
ADQ anchored the deal with $120m, while the Abu Dhabi Pension Fund committed $100m. Emirates Investment Authority invested $75m and the Adani family committed $75m, Borouge said.
The listing of Borouge on the ADX, which has a market capitalization of about Dh1.94 trillion, is the latest in a string of IPOs on the bourse.
The cornerstone investors are barred from selling their shares for six months following the listing on ADX, the company said.
