Abu Dhabi's Borouge secures cornerstone investors including Adani

The Abu Dhabi National Oil Company and Borealis' joint venture set the offer price for its IPO at 2.45 dirhams ($0.67) a share, which implies an equity value of $20 bn

Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it secured seven cornerstone investors, including India's wealthy Adani family for its $2 billion initial public offering (IPO).

The Abu Dhabi National Oil Company and Borealis' joint venture set the offer price for its IPO at 2.45 dirhams ($0.67) a share, which implies an equity value of $20 billion, it said in a statement.

Borouge said it secured a total commitment of about $570 million from Abu Dhabi state holding firm ADQ, the Abu Dhabi Pension Fund, the Emirates Investment Authority, India's Adani family and entities controlled by International Holding Company , Multiply Group and Alpha Dhabi.

Books for the initial public offering were covered in about an hour after opening, a bookrunner on the deal said. ADNOC declined to comment.

The company, whose products are used in items such as cars and food packaging, said last week that its offering will consist of approximately 3 billion existing shares, representing 10% of the company's issued share capital.

Gulf oil producers are following in the footsteps of Abu Dhabi with plans to raise tens of billions of dollars through sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.

($1 = 3.6726 UAE dirhams)