The OMV chemical subsidiary Borealis and the state-owned oil company Abu Dhabi National Oil Company (Adnoc) met with brisk demand when their joint plastics company Borouge went public. In total, there were bids of $80 billion (almost €75 billion), two people familiar with the situation said, according to Archyde.com. The offer was thus oversubscribed by a factor of regarding 40. Borouge and Adnoc declined to comment.
The two insiders, who declined to be named, said they had received orders worth $63 billion from institutional investors, including the world’s largest asset managers BlackRock and Fidelity. Demand from private investors, including company employees, totals $17 billion. This is the highest demand for an IPO in the United Arab Emirates in almost two decades. The shares are to be listed on the Abu Dhabi Stock Exchange.
2 billion dollars
Borouge manufactures so-called polyolefins, plastics that are used in packaging, in automotive construction and in the medical sector. The offer price for the IPO was set at 2.45 dirhams ($0.67) last week. Borouge’s overall valuation was $20 billion. The IPO should bring $2 billion into the coffers.
