Abu Dhabi National Oil Company (ADNOC)'s petrochemicals joint venture Borouge has set an offer price of 2.45 dirhams ($0.66) per share for its IPO, the biggest-ever in the country, and has received cornerstone commitments worth $570 million investors including Abu Dhabi companies and the Indian conglomerate Adani Group.
The offer price implies an equity valuation of approximately $20 billion, the company, which plans to IPO and list its shares on the Abu Dhabi Securities Exchange (ADX), the specialty plastics maker said in a statement on Monday.
Entities ultimately controlled by International Holding Company, Multiply Group, and Alpha Dhabi Holding, who have committed to subscribe for shares in amounts equal to $50 million; $50 million; and $100 million respectively.
Additionally, ADQ has committed $120 million; Abu Dhabi Pension Fund has committed $100 million; Emirates Investment Authority has committed $75 million; and the Adani Family has committed $75 million.
The IPO subscription period starts today and runs until May 28 for the UAE retail investors and May 30 for institutional buyers. The offering consists of 3 billion existing shares, representing 10 percent of Borouge’s issued share capital.
Borouge expects its shares to be admitted for trading on the ADX on June 3.
Borouge is the latest in the slew of Abu Dhabi's state backed companies that have sought to monetise its assets via a public offering.
ADNOC itself listed its drilling business in an IPO last year, the largest in Abu Dhabi to date. Fertiglobe, a joint venture between ADNOC and chemical producer OCI, also made its market debut last year, and ADNOC floated shares in its distribution business in 2017.
(Reporting by Brinda Darasha; editing by Seban Scaria)