Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austrian chemical company Borealis, will list on the Abu Dhabi stock exchange in June. The petrochemical company will sell three billion shares in the initial public offering, a 10% stake.
On the heels of a series of public offerings across the Middle East, the IPO could raise as much as $2 billion, according to CNBC. ADNOC is expected to own 54% of Borouge’s shared capital, and Borealis, 36%. Recently, high dividends have drawn global investors to the Gulf region, specifically Saudi Arabia and the United Arab Emirates, which are taking advantage of high demand and escalating energy prices to take state-owned companies public.
“Through Borouge and our recently announced 25% equity investment in Borealis, ADNOC is poised to capitalize on the significant industrial and consumer-led growth in the petrochemicals sector over the coming decades,” said Sultan Al Jaber, the United Arab Emirate’s Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group Chief Executive Officer.
ADNOC has had a series of IPOs recently, including the listing of ADNOC Distribution, the $1.1 billion offering of ADNOC Drilling, and the listing of fertilizer business Fertiglobe.
Borouge said investors would receive dividends twice each fiscal year, including fixed dividends of $325 million in September 2022 and $650 million in March 2023.
“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,” Borouge CEO Hazeem Sultan Al Suwaidi said in a statement.
The company employs 3,000 people and has facilities in Abu Dhabi, Shanghai, and Singapore with customers in 50 countries across the Middle East, Africa, and Asia.