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Abu Dhabi’s Borouge $2 billion IPO to attract BlackRock, Fidelity

Published: Updated:

UAE chemical producer Borouge Plc’s $2 billion initial public offering is attracting interest from BlackRock Inc. and Fidelity, as fund managers scramble for a slice of the latest hot Middle Eastern listing, people with knowledge of the matter said.

BlackRock and Fidelity are among international funds bidding to get stock in the offering, the people said, asking not to be identified because the information is private.

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Borouge had already attracted orders from institutional investors for at least 17 times the amount of stock on offer as of mid-day Wednesday, the third day of book building, according to the people.

Borouge makes specialty plastics for manufacturing and consumer goods at its production facilities in the emirate of Abu Dhabi. Its owners - Abu Dhabi National Oil Co. and Austrian chemical maker Borealis AG - are seeking to value Borouge at about $20 billion in what would be the emirate’s biggest-ever listing.

ADNOC and Borealis aren’t currently planning to boost the size of the deal to meet excess demand and will likely stick to their initial plan to list 10 percent of the company, the people said.

Retail investors have until May 28 to place orders and institutional investors have until May 30, meaning to demand for shares is likely to rise.

Representatives for ADNOC and BlackRock declined to comment, while spokespeople for Borealis and Fidelity didn’t immediately respond to requests for comment.

The deal is the latest in a string of blockbuster listings from the UAE and neighboring Saudi Arabia, even as volatility rocks markets elsewhere.

The region’s IPO boom has gathered steam as oil and gas prices have surged in the wake of Russia’s invasion of Ukraine. The UAE is the third-biggest oil producer in OPEC+.

Seven cornerstone investors agreed to subscribe for $570 million worth of shares in the Borouge IPO.

The family of Indian billionaire Gautam Adani has committed $75 million, while Abu Dhabi wealth fund ADQ will buy $120 million of shares and Alpha Dhabi Holding has committed $100 million.

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