The United Arab Emirates’ biggest oil company and Borealis AG are seeking to raise $2 billion from an initial public offering of their chemicals joint venture in Abu Dhabi, set to be the biggest ever listing in the emirate.
Borouge’s IPO offer price has been set at 2.45 dirhams per share, Abu Dhabi National Oil Co. said in a statement on Monday. Adnoc and Vienna-based Borealis are selling 3 billion shares in Borouge, equating to 10% of the company. That implies an equity valuation of just over $20 billion for the maker of specialty plastics for manufacturing and consumer goods.
Seven cornerstone investors have agreed to subscribe for $570 million worth of shares in the IPO. The family of Indian billionaire Gautam Adani, Asia’s richest man, has committed $75 million, Abu Dhabi wealth fund ADQ will buy shares worth $120 million and Alpha Dhabi Holding has committed $100 million.
The deal is the latest in a string of blockbuster listings from the UAE and neighboring Saudi Arabia, even as volatility rocks markets elsewhere. The region’s IPO boom has gathered steam as oil and gas prices have surged in the wake of Russia’s invasion of Ukraine. The UAE is the third-biggest oil producer in OPEC.
At $2 billion Borouge is set to eclipse Adnoc Drilling Co.’s $1.1 billion IPO last year as the largest ever in Abu Dhabi, data compiled by Bloomberg show. Its order books were covered within a few hours, terms seen by Bloomberg show.
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