Abu Dhabi National Oil Company (ADNOC), together with its long-standing partner Borealis AG, have announced an intention to float 10% of Borouge plc, their petrochemicals joint venture, on the Abu Dhabi Securities Exchange (ADX) through an initial public offering (IPO).
The offering is expected to open on 23rd May, 2022, subject to regulatory approvals and other relevant considerations.
Borouge, established in 1998, combines the strength and experience of ADNOC and Borealis, through ADP, its operations joint venture, headquartered in Abu Dhabi and PTE, its sales and marketing joint venture, headquartered in Singapore.
Today, Borouge is one of the world's leading providers of innovative and differentiated polyolefin solutions for the agriculture, infrastructure, energy, advanced packaging, mobility and healthcare industries. The Borouge portfolio of products comprises polyethylene and polypropylene - the two most common types of polymers - which are used for various applications such as sustainable packaging, pipes and fittings, wires and cables, automotive and medical applications.
Borouge's polymer solutions are categorised into two main product segments: consumer solutions and infrastructure solutions. Consumer solutions include sustainable packaging, medical containers and greenhouse films, while infrastructure solutions include water and gas pipes and cables for power transmission.
Through a potential listing of a minority stake in Borouge, ADNOC is offering investors another highly compelling investment opportunity to invest alongside ADNOC in a company that is deemed to play a vital role in the sustainable growth for Abu Dhabi and the UAE.
Commenting on the launch of the Borouge IPO process, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said, "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.
“Following the highly successful listings of ADNOC Distribution, ADNOC Drilling and Fertiglobe, ADNOC is bringing to the market a UAE-based, globally competitive market leader. This world-class business provides cutting-edge manufacturing, consumer and infrastructure solutions and offers innovative technologies. This latest offering will be open to all citizens and residents of the UAE and international and local institutional investors.”
He concluded, “Through Borouge and our recently announced 25% 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 subsidiary to come to market, is another significant milestone in our highly successful value creation and strategic growth journey. ADNOC continues to consistently unlock and maximise value across its integrated upstream and downstream asset base to drive sustainable growth for the benefit of Abu Dhabi and the UAE.”
