Stocks in Abu Dhabi rebounded on Friday, ahead of its biggest ever initial public offering (IPO) of petrochemicals firm Borouge, although the Dubai index ended flat.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge.
Borouge said on Monday it has set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors. read more
According to Daniel Takieddine, CEO MENA BDSwiss, investors are increasingly looking toward Borouge's IPO as a catalyst and the listing could attract liquidity as well as help the main index near its previous peak.
In Abu Dhabi, the index (.FTFADGI) advanced 1.6%, with First Abu Dhabi Bank (FAB) (FAB.AD) jumping 6%, its biggest intraday gain in nearly three months.
FAB, the United Arab Emirates' biggest lender, along with other banks is set to share up to $30 million in fees for working on the Borouge IPO, according to a media report.
Elsewhere, Al Seer Marine Supplies And Equipment (ASM.AD) rose nearly 2% as the firm acquired two LPG Tankers worth 246 million dirhams ($66.98 million).
On the other hand, the Abu Dhabi index posted weekly loss of 2.5%, its fourth weekly loss in five.
Dubai's main market index (.DFMGI), however, closed flat.
Logistics firm Aramex leapt 4.8% after the company increased its foreign ownership limit to 100% from 49% earlier.
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