Adnoc, Borealis Will Sell 10% of Chemical JV Borouge in IPO - Bloomberg
Abu Dhabi National Oil Co. and Borealis AG plan to sell a 10% stake in their petrochemical joint venture in an initial public offering, the latest in a string of blockbuster listings from the Middle East to push ahead even as volatility rocks global markets.
The state-owned energy company and the Austrian chemicals producer will sell 3 billion shares in the Abu Dhabi IPO of Borouge, they said in a statement, without indicating a price range. The sale could raise about $2 billion and value the unit that makes specialty plastics for manufacturing and consumer goods at roughly $20 billion, Bloomberg News reported in April.
Borouge shares are expected to start trading on June 3, Adnoc and Borealis said in the statement. The subscription period for retail investors will be from May 23 to May 28 and qualified investors can sign up to buy the shares from May 23 to May 30.
The Middle East IPO boom has continued to gather steam even as Russia’s invasion of Ukraine, hawkish central banks and soaring inflation have put a lid on share sales in the rest of the world. The region has largely dodged the turbulence, buoyed by high oil prices and significant equity inflows into Gulf markets.
Local energy companies are stepping up efforts to list assets, looking to draw in global investors and support the shift to a post-oil economy. The United Arab Emirates and Saudi Arabia have been leading the way in this drive, with the IPO of oil giant Saudi Aramco in 2019 and the sale of stakes in various Adnoc units.
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