ADNOC begins the procedures for listing a share of “Borouge” shares for an initial public offering on the Abu Dhabi Financial Market

The Abu Dhabi National Oil Company (ADNOC) and its strategic partner, Borealis, announced today their intention to offer a 10% stake in Abu Dhabi Polymers Company Limited (Borouge plc) (“Borouge” or the “Company”), a petrochemical joint venture, for an initial public offering. The first in the Abu Dhabi Securities Exchange.

It is expected that the subscription for the offering shares will start on May 23, 2022, subject to obtaining approvals from the relevant regulatory authorities.

Borouge was established in 1998 as a joint venture between the Abu Dhabi National Oil Company "ADNOC" and "Borealis" to combine the strengths, experience and advantages of both companies.

Borouge consists of two companies: Abu Dhabi Polymers Company Limited (Borouge), headquartered in Abu Dhabi, which handles petrochemical production operations, and Borouge Private Limited, headquartered in Singapore, which is responsible for the marketing and sales of Borouge products, which is today one of the The world's leading provider of innovative and diversified solutions of high-value polymers to sectors including agriculture, building and construction, energy, advanced packaging, transportation and health.

Borouge's product portfolio includes polyethylene and polypropylene, two of the most widely used polymers in industrial applications such as sustainable packaging, tubes and fittings, cables, automobiles and medical devices.

Borouge's polymer solutions are categorized into two main divisions: polymer solutions for consumers, and polymer solutions for infrastructure facilities.

Consumer solutions include sustainable packaging, medical containers and greenhouse covers, while infrastructure solutions include water and gas pipelines and power transmission cables.  

By offering a minority stake in Borouge to the public, ADNOC provides an exceptional opportunity for investors to participate in the growth story of a pioneering company that will play a pivotal role in achieving sustainable growth for the Emirate of Abu Dhabi in particular and the UAE in general.

On this occasion, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of the Abu Dhabi National Oil Company (ADNOC) and its group of companies, said: "In line with the directives of the wise leadership, ADNOC continues its efforts to support the growth and diversification of the economy and the development of capital markets in the country. Today, we announce the intention of ADNOC and our strategic partner, Borealis, to offer a minority stake in Borouge, our petrochemical joint venture, on the Abu Dhabi Stock Exchange, following the successful listing of ADNOC Drilling and Vertiglobe. Thus, Borouge joins the local capital markets as a leading company based in the UAE and competes strongly in the global markets by providing innovative solutions in the field of polymers for the industrial sector, infrastructure and consumers.The subscription to Borouge shares will be available to citizens and residents in the UAE, in addition to international and local investment institutions.

 He added: "Through the (Borouge) offering and our recently announced investment of acquiring 25% of the shares of Borealis, ADNOC is preparing to take advantage of the rise in demand for the petrochemical sector in the coming decades, which is led by the industrial and consumer sectors. This is considered The fourth offering of one of ADNOC’s subsidiaries to the market, in a new step within our strategy to create value and achieve smart growth, as “ADNOC” continues its efforts to achieve the maximum possible value from its integrated assets in the areas of exploration, development, production, refining, marketing and manufacturing, to contribute to advancing economic and social growth. sustainable development for the benefit of the UAE and Abu Dhabi.

  The main axes of Borouge's strategic growth plan include achieving continuous growth in its product portfolio through innovation, sustainable solutions, product development, strategic market access and geographic expansion.

The company will also focus on providing its diverse range of products and innovative industrial solutions to the final markets that offer excellent prices, and take advantage of the Borstar technology, which enabled Borouge to design special solutions that meet the requirements of its customers and contribute significantly to facilitating daily life.

  Borouge will also benefit from ADNOC's successful investment in Borealis, which was announced recently, which will contribute to strengthening their long-term partnership and accelerating the implementation of the objectives of ADNOC's growth and expansion program in the field of refining, petrochemicals and industrial operations.

ADNOC plans to take advantage of growth opportunities in the chemical and petrochemical sector, by relying on its world-class refining and petrochemical facilities in the Ruwais Industrial City in Abu Dhabi. Enhancement system.  

Borouge, through its subsidiaries, operates one of the largest integrated polyolefin complexes in the Ruwais area.

The company also has logistic centers in various locations in the region, in addition to storage warehouses and export terminals spread in the Middle East, North Africa, Europe and Asia, in addition to a polymer composites manufacturing unit in Shanghai, in which the resins produced in the Ruwais factory are installed, and are used in many Industries include the auto industry in Asia and other industrial areas such as medical devices, healthcare supplies and sterilization.

Over the past six years, ADNOC has implemented an effective program for managing its portfolio and capital, and has developed a model of innovative, more open and flexible strategic partnerships in all aspects of the value chain of its exploration, development, production, refining, manufacturing, marketing and petrochemical businesses.

ADNOC plans to implement a capital investment program worth $122 billion (equivalent to AED 447.7 billion) in all group companies during the period between 2021-2025 to enable its growth strategy and create and enhance value.

ADNOC plans to expand the investor base by offering minority stakes in selected companies from its group of operating companies. This started with the initial public offering of ADNOC Distribution in 2017, and was followed by the listing of ADNOC Drilling shares in October 2021, which is the largest offering in the market. Abu Dhabi Securities to date, and offering a stake to the public in "Vertiglobe".

These listings supported the growth of the private sector and the development of local capital markets, in addition to providing the opportunity for local and international investors to invest in ADNOC's world-class assets and participate in its growth and development process.

Borouge employs more than 3,100 employees in Abu Dhabi Plastics Company Limited and Borouge Private Limited, and provides its products to customers in more than 50 countries in Asia, the Middle East and Africa.

The details of the offering with respect to individual subscribers will be published in an Arabic-language prospectus “the prospectus for the public offering in the United Arab Emirates” and “announcement of the public offering”, and the “international offering memorandum” will be published in English for eligible investors.

It is expected that the “IPO prospectus for the public offering in the United Arab Emirates” and the “IPO announcement” will be published today, while the “International Offering Memorandum” is expected to be published during the scheduled time.

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