UAE: Adnoc announces largest company IPO, oversubscribed almost 42 times

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The expected date of listing on the ADX is June 3, 2022.

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By Wam

Published: Tue 31 May 2022, 2:19 PM

Last updated: Tue 31 May 2022, 3:12 PM

Abu Dhabi National Oil Company (Adnoc) announced the successful completion of the bookbuild and public subscription process for the Initial Public Offering (IPO) of Borouge plc, along with its partner Borealis AG.

Their petrochemicals joint venture is listed on the Abu Dhabi Securities Exchange (ADX).

The offering is of 3,005,769,158 ordinary shares (Offer Shares), equivalent to 10 per cent of total issued share capital, and stands at an offer price of Dh2.45 per ordinary share.

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The offering was significantly oversubscribed and experienced overwhelming demand from UAE retail investors and qualified institutional investors.

Within less than an hour, the book was covered with public subscriptions. The Offering saw 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 June 3, 2022. Upon listing, Adnoc will continue to own a majority 54 per cent stake in Borouge, while Borealis ME will hold 36 per cent.

Borouge is the fourth company that Adnoc has brought to market since 2017 and follows the highly successful IPOs of Adnoc Distribution, Adnoc Drilling and Fertiglobe.

Borouge has a robust financial profile, with full-year revenue of $5.5 billion in 2021 and profit for the year of $1.5 billion for its ADP business only, with a track record for very strong cash flow generation that supports its capacity to pay highly competitive future dividends. 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% based on the price per share announced for the Offering.

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Wam

Published: Tue 31 May 2022, 2:19 PM

Last updated: Tue 31 May 2022, 3:12 PM

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