Borouge shares list, trade today on ADX

IPO raised $2 bn, ADX's biggest
Borouge shares list, trade today on ADX
A photo from Borouge's listing ceremony

Today, Friday, the Abu Dhabi Securities Exchange (ADX) witnessed the listing and opening of trading of petrochemical company Borouge in the first market, first category.

On the first trading day, the Borouge stock achieved gains exceeding 20 percent.

The turnout for the trading volume is large, as it is the largest transaction volume for a listed company.

Analysts said that today’s good stock performance was expected, as stocks recorded strong gains since the beginning of the session, noting that the company’s expected high yields have attracted investors.

Abu Dhabi National Oil Company (ADNOC) and Borealis raised $2 billion in the initial public offering (IPO) of their chemical joint venture, Borouge, after the bid raised $83 billion in orders, the latest indication of robust demand for stock listings in the region. 

Borouge’s IPO is the largest listing in Abu Dhabi to date within a series of large IPOs in the region’s markets, particularly in the UAE and Saudi.

The company offered 3 billion shares of its shares on May 23, equivalent to 10 percent of its capital distributed among three segments (individuals, professional investors, employees of ADNOC, and Borealis). The deal which was offered at a price of 2.45 dirhams per share, valued Borouge at $20 billion. Total subscription requests for shares offered by accredited investors and individual subscribers exceeded $83.4 billion, covering about 42 times the target subscription.

Individual and employee subscriptions ended on Saturday, May 28th, while institutional subscriptions ended last Monday.

Headquartered in Abu Dhabi, Borouge manufactures specialized plastics for manufacturing and consumer goods. It said it would distribute $975 million in dividends for FY2022 and will increase to at least $ 1.3 billion by 2023.