Borouge IPO raises $2 billion

Recently, Borouge said it has completed the bookkeeping and public subscription process for its initial public offering (IPO) on the Abu Dhabi Stock Exchange (ADX). The company has confirmed that the previously announced issue size was just over 3 billion ordinary shares, equivalent to 10% of Borouge's total issued share capital, at AED 2.45 per share. Its parent companies, Abu Dhabi National Oil Company (ADNOC) and Borealis Middle East Holdings (Borealis ME), now have a combined financing of more than $2 billion at the time of settlement.

Borouge said the stock offering was "multiple" oversubscribed, with huge demand from UAE retail investors and accredited institutional investors. The company said the total demand for the IPO was more than $83.4 billion, implying a total subscription volume of 42 times the offering value. This is the largest public company in ADX's history. After the subscription period, the first tranche of the IPO will be set aside for UAE retail investors and other individual investors at 10%. The second tranche is reserved for local, regional and international qualified institutional investors, and the size is set at 88%, mainly for employees of ADNOC Group companies living in the UAE, Borealis employees living in the UAE, retirees of ADNOC and Borealis in the UAE . The third tranche retained by employees and retirees of other related companies is set at 2%.