ADNOC delivers fourth consecutive record-setting IPO on ADX

The IPO, which raised gross proceeds of more than $2.0 billion for the offering of 10% of the Company's total issued share capital, attracted total gross demand of more than $83.4 billion and was almost 42 times oversubscribed in aggregate. The retail offering, which attracted higher retail demand than any UAE IPO in nearly 20 years, was 74 times oversubscribed.

Borouge's shares began trading at AED2.45, implying a market capitalisation for the Company of $20.05 billion at the time of listing.

Borouge is the fourth company that ADNOC has brought to market since 2017 and follows the highly successful IPOs of ADNOC Distribution, ADNOC Drilling and Fertiglobe.

Speaking at the opening bell-ringing ceremony, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Borouge Chairman, said, "ADNOC is delighted to have delivered today's truly record-setting IPO of Borouge, which marks Abu Dhabi's largest-ever market debut. With exceptional demand from local retail and institutional investors as well as the global institutional investor community, this historic listing is the fourth company we have successfully brought to market.

"This IPO demonstrates our ongoing contribution to support the diversification of Abu Dhabi's buoyant and dynamic equity capital market and reinforces ADNOC's continued role as the critical enabler of growth and expansion of the UAE economy and private sector and in solidifying Abu Dhabi's position as global investment destination of choice.

"As part of our ongoing value creation programme, we will continue to unlock opportunities to expand our investor base and access to capital, while providing domestic and international investors with the opportunity to invest and partake in the growth of our world-class portfolio of energy assets. Working closely with our long-standing strategic partner Borealis, ADNOC will remain a committed majority shareholder in Borouge, and we look forward to delivering sustainable growth and long-term benefits for Abu Dhabi, the UAE, and our shareholders."

Borealis CEO, Thomas Gangl, commented, "The extraordinary subscription numbers and interest in becoming a shareholder of Borouge underpin the attractiveness of the company and the growth path Borealis and ADNOC have been embarking on successfully over the years. The successful IPO facilitates the expansion of the Group towards its next milestone, Borouge 4, and the ongoing efforts in providing innovative and differentiated polyolefin solutions. Borealis, together with its long-standing partner ADNOC, continues to be a proud shareholder and welcomes the new shareholder base and opportunity for investors to participate in the attractive journey ahead for the company."

Ahmed Jasim Al Zaabi, Chairman of ADGM, said, "We congratulate Borouge on this important milestone and the significant interest it has generated the world over. Despite volatile global markets, high investor interest in Borouge demonstrates the untapped potential and value of UAE companies for local and global investors. This is a defining moment for the UAE's capital and regulatory markets. As Abu Dhabi's International Financial Centre, we're seeing a significant increase in companies registering in ADGM and exploring listings in the UAE to capitalise on the strong local and international investor demand for the UAE's national champions. As a destination of choice that helps businesses thrive, ADGM will continue to support organisations across Abu Dhabi to achieve their ambitions."

Hisham Khalid Malak, Chairman of the ADX, commented, "We congratulate Borouge on their successful IPO, and we are excited to welcome them on the Abu Dhabi Securities Exchange as one of the largest IPOs in the history of our dynamic exchange, marking yet another immense milestone for us. Borouge is a prime example of the strong and global partnerships that Abu Dhabi continues to foster, which have led to Borouge going from strength to strength as a leading petrochemicals firm. ADX is proud of the central and pivotal role it continues to play in Abu Dhabi's economic diversification efforts as we seek to attract further world-class companies that deliver a wide range of products and services and add diversification to our growing offering and capital market ecosystem."

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said, "We are proud to have completed this highly successful IPO and to begin our first day of trading on ADX. Borouge has seen exceptionally strong demand from regional and international investors, with significant cornerstone commitments from high-quality investors, a clear indicator of the strength of our investment thesis and strategic roadmap. We are excited to welcome our new shareholders, and we will continue to focus on driving our strategy to grow our innovative polyolefins platform and lead the petrochemical industry transition."

Founded in 1998 as a strategic joint venture between ADNOC and Borealis, Borouge is one of the world's leading providers of innovative and differentiated polyolefin solutions for the agriculture, infrastructure, energy, packaging, mobility and healthcare industries. With the landmark IPO offering local and international investors the opportunity to own shares in one of the world's leading petrochemical players, Borouge expects to pay a dividend of $975 million for the fiscal year 2022; and to pay a dividend of no less than $1.3 billion for fiscal year 2023, equivalent to a 6.5% dividend yield based on the offer share price.

Over the last six years, ADNOC has actively managed its businesses and capital and successfully developed a more open, flexible and innovative partnership model across its integrated upstream and downstream value chain. This value creation and growth strategy is enabled by a $127 billion (AED466 billion) capital investment programme across the Group between 2022 to 2026.

Borouge employs over 3,100 people and serves customers in more than 50 countries across Asia, the Middle East and Africa. Upon listing, ADNOC will continue to own a majority 54% stake in Borouge, while Borealis ME will hold 36%.