EFG Hermes concludes bookrunner role in $2 billion IPO of Borouge Plc on Abu Dhabi Securities Exchange

June 3, 2022June 3, 2022 Stan

EFG Hermes, an investment bank franchise in Frontier Emerging Markets (FEM), has announced that its Investment banking division has concluded its role as joint bookrunner on Borouge Plc’s $2 billion (AED 7.35 billion) initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The transaction marks the largest-ever listing in Abu Dhabi’s history since ADNOC Drilling’s $1.1 billion (AED 4 billion) IPO.

Borouge, one of the world’s leading providers of advanced polyolefin solutions, listed 3.0 billion shares today — 10% of its share capital — at a share price of AED 2.45, indicating a market capitalization of AED AED 73.6 billion ($20 billion).

What the company is saying

“We’re extremely proud of this transaction — as we continue to play a proactive role in enriching the Emirati market and the Middle East at large with a multitude of accretive investment prospects,” said Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking.

“Despite the macroeconomic turbulence that continues to pose a threat to global markets, the UAE still manages to hold its stance as a promising and resilient equity market. The nation’s recent IPOs, which boomed particularly in 2021, have garnered significant investor interest, solidifying the UAE’s position as a highly favourable destination for equity investors.

Borouge Plc’s deal comes as the latest addition to a series of megahit offerings in the region that are fueling economic growth, creating jobs, enhancing competitiveness, and broadening investment opportunities in the GCC.”

What you must know

Established in 1998 as a strategic partnership between state-owned Abu Dhabi National Oil Co. (ADNOC) and Borealis AG (Austrian chemicals and fertilizers manufacturer), Borouge Plc is a global petrochemicals producer specializing in value-creating plastic solutions for agriculture, infrastructure, energy, packaging, mobility, and healthcare purposes. It boasts a team of over 3,100 employees and serves a customer-base spanning over 50 countries across Asia, the Middle East and Africa.
GCC markets have witnessed a surge in Q1 2022, on the back of high oil and commodity prices, with Abu Dhabi Securities Exchange among the leaders, with a 17% gain during the quarter. Its market capitalization more than doubled in 2021 and climbed 4.7% to Dh1.79 trillion (USD 487 billion) in March 2022. Its active IPO environment, which included nine listings in 2021 and expects more this year, will further support trading activity on the Abu Dhabi Financial Market in the short term.