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UAE’s ADNOC completes Abu Dhabi’s largest initial public offering

Abu Dhabi – Mubasher: The Abu Dhabi National Oil Company “ADNOC” and its strategic partner, “Borealis”, announced the successful completion of the price-building process and the completion of the subscription process for a stake in the shares of their joint petrochemical venture, Borouge, on the Abu Dhabi Stock Exchange.

The offering of 3,005,769,158 ordinary shares representing 10% of the company’s issued capital, at a price of 2.45 dirhams per ordinary share, generated total returns upon settlement of more than $2 billion for ADNOC and Borealis, collectively called “selling shareholders,” according to the Emirates News Agency, WAM.

The subscription was covered several times and witnessed strong demand with great demand from individual investors in the UAE and qualified investors.

The total demand for the initial public offering amounted to more than 83.4 billion US dollars, which means that the level of subscription in the total amounted to about 42 times the target value.

The subscription was covered in less than one hour from the start of the public offering process, which witnessed the highest levels of demand in two decades at the state level by individual investors in the UAE, with a total demand of more than 17.9 billion US dollars. The IPO represents the largest demand for an initial public offering by ADNOC to date.

Borouge is the fourth company that ADNOC has offered part of its shares to the market since 2017, following the successful initial public offerings of ADNOC Distribution, ADNOC Drilling and Fritglobe.

Borouge has a strong financial profile, with annual revenues of $5.5 billion in 2021 and one of its two companies, Borouge. ADP With annual earnings of $1.5 billion for the year, it has a proven track record of generating strong cash flows that supports its ability to pay a competitive dividend in the future.

The company expects to pay a dividend of $975 million to shareholders in 2022, and expects to pay in 2023 at least $1.3 billion for the full-year period, equivalent to a dividend yield of 6.5% based on the published share price. for subtraction.

The main axes of Borouge’s strategic growth plan are to achieve continuous growth in its product portfolio through innovation, provision of sustainable solutions, product development, access to strategic markets and geographical expansion.

The company will also focus on providing its diversified range of products and innovative industrial solutions to the final markets that offer excellent prices, taking advantage of Borealis technology. Brushes Which enabled Borouge to design special solutions that meet the requirements of its customers and contribute greatly to facilitating daily life.

ADNOC has implemented an effective program to manage its business and capital portfolio, and has developed a model of innovative strategic partnerships that are more open and flexible in all aspects of the value chain of its business in the fields of exploration, development, production, refining, manufacturing, marketing and petrochemicals.

ADNOC plans to implement a capital investment program worth $122 billion (equivalent to 447.7 billion dirhams) in all group companies during the period between 2021-2025 to enable its growth strategy and create and enhance value.

Borouge is expected to be listed on the Abu Dhabi Securities Exchange on June 3, 2022. After the listing process, ADNOC will retain the majority stake in Borouge, which amounts to 54%, while Borealis Middle East will retain its 36% stake in the company.

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