Total IPO demand exceeded $83.4 billion

Borouge's IPO generates total revenues of more than $2 billion

Borouge is expected to be listed on the Abu Dhabi Securities Exchange next Friday.

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The Abu Dhabi National Oil Company (ADNOC) and its strategic partner, Borealis, announced the successful completion of the price construction and the completion of the subscription process for a stake in Borouge, their petrochemical joint venture, on the Abu Dhabi Stock Exchange.

The offering, amounting to three billion five million and 769 thousand and 158 ordinary shares representing 10% of the company’s issued capital at a price of 2.45 dirhams per ordinary share, achieved total returns upon settlement of more than two billion dollars for the companies “ADNOC” and “Borealis”, collectively called “seller shareholders”. .

The subscription was covered several times, and it witnessed a strong demand with great demand from individual investors in the UAE and qualified investors.

The total demand for the initial public offering amounted to more than 83.4 billion dollars, which means that the level of subscription in the total amounted to about 42 times the target value.

The subscription was covered in less than one hour from the start of the public offering process, which witnessed the highest levels of demand in two decades at the state level by individual investors in the UAE, with a total demand of more than $ 17.9 billion.

The IPO represents the largest demand for an initial public offering by ADNOC to date.

Borouge is the fourth company to offer ADNOC part of its shares to the market since 2017, following the successful initial public offerings of ADNOC Distribution, ADNOC Drilling and Fertiglobe.

Borouge has a strong financial profile, with annual revenues of $5.5 billion in 2021.

The company expects to distribute a dividend to shareholders in 2022, amounting to $975 million, and expects to pay in 2023 at least $1.3 billion for the full-year period, equivalent to a dividend yield of 6.5% based on the announced share price of the offering.

Today, Borouge is one of the world's leading companies in providing innovative and diversified solutions of high-value polymers for several sectors, including agriculture, building and construction, energy and packaging, advanced packaging, transportation and health.

It is expected that Borouge will be listed on the Abu Dhabi Securities Exchange on June 3, 2022. After the listing process ends, ADNOC will retain the majority stake in Borouge, which amounts to 54%, while Borealis Middle East will retain its 36 stake. % In the company.

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