(MENAFN- Khaleej Times) Adnoc will own 54 per cent of the company while rest of the 36 per cent stakes will go to Borealis Borouge has grown into one of the world's leading petrochemical companies that creates polyolefin solutions since it was established in 1998, supported by our shareholders, Adnoc and Borealis. -- File photo by Muzaffar Rizvi
Published: Wed 18 May 2022, 2:30 AM
Last updated: Wed 18 May 2022, 2:52 AM
Borouge on Wednesday announced plans to float a minority stake and list the company on the Abu Dhabi Securities Exchange (ADX) by June 3, 2022.
The Abu Dhabi-based company, a joint venture between Abu Dhabi National Oil Company (Adnoc) and Austrian chemical producer Borealis, will list 10 per cent of its shares, or more than three billion ordinary shares, on the second biggest stock market of the region.
According to the initial public offering (IPO) plan, which is still subject to regulatory approval, Adnoc will own 54 per cent of the company while rest of the 36 per cent stakes will go to Borealis. The sale is expected to value Borouge at about $20 billion.
'The UAE retail offering subscription period is expected to run from May 24, 2022 to May 28, 2022 while the qualified investor offering subscription period is expected to run from May 23, 2022 to May 30, 2022. Admission of shares to trading on the ADX is anticipated on June 3, 2022,' according to a statement issued by Borouge on Wednesday.
Adnoc owns Borouge along with Borealis, which is itself owned by Austrian refiner OMV AG and Abu Dhabi's Mubadala Investment Company.
Founded in the late 1990s, Borouge manufactures plastics used in everything from automobiles and food packaging to medicine vials and piping systems. The company's main plant is in Abu Dhabi and it employs more than 3,000 people and serves customers across the Middle East, Africa and Asia.
Twice a year dividends
The company intends to pay dividends twice each fiscal year after the offering. The company is expected to pay first dividend of $325 million in September 2022 while another $650 million will be distributed among the shareholders in March 2023, awarding $975 million in total for financial year 2022.
'For the financial year 2023, the company intends to pay a dividend of no less than $1.3 billion,” according to the statement.
Earlier, Adnoc Group successfully listed some of its companies and joint venture business such as Adnoc Distribution, Adnoc Drilling and Fertiglobe on the ADX. It raised $1.1 billion by listing Adnoc Drilling Company and $795 million from the sale of shares in its Fertiglobe unit.
In April, Dubai Electricity and Water Authority raised $6.1 billion in the world's second-biggest initial public offering this year.
IPO open for all
Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Adnoc managing director and Group CEO, said Borouge will be open to all citizens and residents of the UAE.
“Together with our long-standing partner Borealis, I am delighted to announce our intention to float a minority stake in Borouge, our petrochemicals joint venture, on the Abu Dhabi Securities Exchange,' Al Jaber said.
Al Jaber said Adnoc continues to consistently unlock and maximise value across its integrated upstream and downstream asset base in order to drive sustainable growth for the benefit of Abu Dhabi and the UAE.
'This latest offering will be open to all citizens and residents of the UAE in addition to qualified international and local institutional investors,” the minister said.
“Through Borouge and our recently announced 25 per cent equity investment in Borealis, Adnoc is poised to capitalise on the significant industrial and consumer-led growth in the petrochemicals sector over the coming decades. Today's proposed listing, our fourth company to come to market, is another significant milestone in our highly successful value creation and strategic growth journey,' Al Jaber said.
Strong partnership
Thomas Gangl, Borealis CEO, said Borealis is excited about bringing a minority stake in Borouge to market, demonstrating the value Borouge represents for the markets and customers it serves.
'Over the last 25+ years, Borouge has developed into a leading company in the sector through the strong partnership of Adnoc and Borealis. Borouge provides solutions for society and aims to accelerate the growth journey towards a sustainable and circular future,” he said.
Promising business outlook
Hazeem Sultan Al Suwaidi, chief executive officer of Borouge, said Borouge has grown into one of the world's leading petrochemical companies that creates polyolefin solutions since it was established in 1998, supported by our shareholders, Adnoc and Borealis.
“Today, we provide sustainable solutions for industries from agriculture, infrastructure and energy to mobility and healthcare, serving customers in over 50 countries across Asia, the Middle East and Africa,” he said.
He said demand for our innovative polyolefin solutions is set to increase in the years ahead, driven by our differentiated products and technology, commitment to sustainable solutions and operations, and robust industry growth trends.
“Our success has been built on the dedication and expertise of our people and we look forward to welcoming new shareholders to be part of the growth of Borouge, as we seek to list our shares on the ADX,” Al Suwaidi said.
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