ADGM registered Borouge completes listing on Abu Dhabi Securities Exchange in a sign of growing investor demand for UAE companies

ADGM 03/06/2022
  • The Abu Dhabi-headquartered petrochemicals firm, Borouge, becomes the largest ever listing to date on Abu Dhabi Securities Exchange

Abu Dhabi Global Market (ADGM) today welcomed the successful initial public offering (IPO) of Borouge plc (Borouge), an ADGM registered public company, on the Abu Dhabi Securities Exchange (ADX). Borouge became the largest ever listing to date in Abu Dhabi’s history, further strengthening the capital’s growing and dynamic capital markets.

Borouge’s listing marks a significant milestone for Abu Dhabi and further strengthens ADGM’s position as the region’s leading International Financial Centre. With its supportive business environment comprising a pioneering regulatory landscape and English common law framework, ADGM is seeing a significant increase in the number of companies choosing to register at the financial centre and explore a potential listing on ADX to attract international investors.

As one of the best performing exchanges globally in 2021, ADX saw the number of new institutional investors increase by 77 per cent to 708 in 2021 and nine companies list last year, including Adnoc Drilling and Fertiglobe, a leading nitrogen fertilizer and ammonia producer and distributer. In 2022, the exchange has continued its listing momentum with Abu Dhabi Ports Group raising $1.1bn from its share sale in February to expand operations globally and boost growth.

The latest Borouge offering has seen the highest subscription levels by UAE retail investors in any UAE IPO in almost two decades and significant demand from local and international institutional investors, leading to an oversubscription by 42 times. Of the 10 per cent of total issued shared share capital offered as part of the float, 88 per cent was earmarked for institutional investors, who placed orders of about $65.5 billion.

Commenting on the successful listing, His Excellency 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.”

Borouge is now a part of ADGM’s fast-growing community of more than 4700 registered entities, comprising world-class local and international banks, financial institutions, investment firms, fund management companies, treasury centres, energy companies, technology firms, tech start-ups, corporate and professional services, and more.

Established in 1998, Borouge is a strategic joint venture between the Abu Dhabi National Oil Company (“ADNOC”) and Borealis. It 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.