Borouge’s $2 Billion IPO Attracts BlackRock, Fidelity - Bloomberg

Borouge’s $2 Billion IPO Attracts BlackRock, Fidelity - Bloomberg

UAE chemical producer Borouge Plc’s $2 billion initial public offering is attracting interest from BlackRock Inc. and Fidelity, as fund managers scramble for a slice of the latest hot Middle Eastern listing, people with knowledge of the matter said.

BlackRock and Fidelity are among international funds bidding to get stock in the offering, the people said, asking not to be identified because the information is private. Borouge had already attracted orders from institutional investors for at least 17 times the amount of stock on offer as of mid-day Wednesday, the third day of bookbuilding, according to the people.

Borouge makes specialty plastics for manufacturing and consumer goods at its production facilities in the emirate of Abu Dhabi. Its owners -- Abu Dhabi National Oil Co. and Austrian chemical maker Borealis AG -- are seeking to value Borouge at about $20 billion in what would be the emirate’s biggest-ever listing.

Adnoc and Borealis aren’t currently planning to boost the size of the deal to meet excess demand and will likely stick to their initial plan to list 10% of the company, the people said. Retail investors have until May 28 to place orders and institutional investors have until May 30, meaning the demand for shares is likely to rise.