Adanis commit $75 million in Borouge's $2-billion IPO, says report

The Adani family has committed $75 million towards the $2-billion initial public offering of Borouge, set to be the biggest ever listing in the emirate.

Seven cornerstone investors have agreed to subscribe for $570 million worth of shares in the IPO, including the Adani family, Abu Dhabi wealth fund ADQ, which will buy shares worth $120 million, and Alpha Dhabi Holding, which has committed $100 million.

Borouge’s IPO offer price has been set at 2.45 dirhams per share, Abu Dhabi National Oil said in a statement on Monday. Adnoc and Vienna-based Borealis are selling 3 billion shares in Borouge, equating to 10 per cent of the company. That implies an equity valuation of just over $20 billion for the firm.

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.

At $2 billion Borouge is set to eclipse Adnoc Drilling Co.’s $1.1 billion IPO last year as the largest ever in Abu Dhabi, data compiled by Bloomberg show. Its order books were covered within a few hours.

Crude prices have surged about 50 per cent this year, boosting efforts by local energy companies to list assets and support the shift to a post-oil economy. Saudi Aramco is considering an initial public offering of its trading arm in what could be one of the world’s biggest listings this year, while Adnoc sold stakes in two units last year.