Borouge, a joint venture between Abu Dhabi National Oil Company and Austrian chemicals producer Borealis, announced early on Wednesday its intention to float a minority stake in the company on the Abu Dhabi Securities Exchange — the second-biggest Arab stock market.
The Abu Dhabi-based company intends to go public with the listing of 10 per cent of its shares, or more than three billion ordinary shares.
After the offering, still subject to regulatory approval, Adnoc will own 54 per cent of the company, while Borealis will own 36 per cent.
“Following the highly successful listings of Adnoc Distribution, Adnoc Drilling and Fertiglobe, Adnoc is bringing to the market a UAE-based, globally competitive market leader,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Adnoc managing director and group chief executive.
“This world-class business provides cutting-edge manufacturing, consumer and infrastructure solutions and offers innovative technologies. This latest offering will be open to all citizens and residents of the UAE in addition to qualified international and local institutional investors,” Dr Al Jaber said.
Following the offering, the company expects to pay fixed dividends of $325 million in September and $650m in March next year, both relating to the financial year 2022. For the fiscal 2023, it aims to pay a dividend of no less than $1.3 billion.
Through Borouge and our recently announced 25 per cent equity investment in Borealis, Adnoc is poised to capitalise on the significant industrial and consumer-led growth in the petrochemicals sector over the coming decades
Dr Sultan Al Jaber,
UAE Minister of Industry and Advanced Technology, and Adnoc managing director and group chief executive
Its ability to pay dividends is dependent on a number of factors, such as the “availability of distributable reserves, the capital expenditure plans and market conditions”.
Established in 1998, Borouge is a petrochemical company that employs more than 3,100 people and serves customers in more than 50 countries across Asia, the Middle East and Africa.
It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.
Its portfolio of products includes polyethylene — the most common form of polymer in use — and polypropylene — the second most common form of polymer — which are used in a variety of products such as pipes, fittings, wires and cables and also have automotive, sustainable packaging, agricultural and medical applications.
Last month, Adnoc announced it would buy Mubadala Investment Company’s 25 per cent stake in Borealis. The deal will allow the state-owned oil and gas producer to expand its international footprint in the fast-growing chemicals and petrochemical sector.
“Through Borouge and our recently announced 25 per cent equity investment in Borealis, Adnoc is poised to capitalise on the significant industrial and consumer-led growth in the petrochemicals sector over the coming decades,” Dr Al Jaber said.
“Today’s proposed listing, our fourth company to come to market, is another significant milestone in our highly successful value creation and strategic growth journey.
“Adnoc continues to consistently unlock and maximise value across its integrated upstream and downstream asset base in order to drive sustainable growth for the benefit of Abu Dhabi and the UAE,” Dr Al Jaber said.
The emirate plans to triple its petrochemical production capacity, from the 4.5 million tonnes currently produced entirely by Borouge in Ruwais, by 2025.
Borouge’s first polythene unit was commissioned in 2001 and its capacity is 450,000 tonnes a year.
Borouge 2 and 3, commissioned in 2010 and 2014, raised the capacity to 2 million tonnes and 4.5 million tonnes of polythene and polypropylene a year, respectively.
Demand for our innovative polyolefin solutions is set to increase in the years ahead, driven by our differentiated products and technology, commitment to sustainable solutions and operations, and robust industry growth trends,”
Hazeem Al Suwaidi,
chief executive of Borouge
Borouge 4, which was announced in February, will increase the company’s overall polyolefin production to 6.4 million tonnes, making it the world’s largest single-site polyolefin complex.
“Demand for our innovative polyolefin solutions is set to increase in the years ahead, driven by our differentiated products and technology, commitment to sustainable solutions and operations, and robust industry growth trends,” said Hazeem Al Suwaidi, chief executive of Borouge.
“Our success has been built on the dedication and expertise of our people and we look forward to welcoming new shareholders to be part of the growth of Borouge, as we seek to list our shares on the Abu Dhabi Securities Exchange,” he said.
The offer period for UAE retail investors will start on May 23 until May 28. Meanwhile, the offer period for institutional investors will start on May 23 and is expected to close May 30, Borouge said.
A minority listing on the ADX demonstrated the value Borouge represented for the markets and customers it served, Borealis chief executive Thomas Gangl said.
“Borouge has developed into a leading company in the sector through the strong partnership of Adnoc and Borealis … [it] provides solutions for society and aims to accelerate the growth journey towards a sustainable and circular future,” Mr Gangl said.
The listing of Borouge on the ADX would be among the latest in a string of IPOs on the stock market.
The shares of Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate, began to trade on the ADX in February.
In October, Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, raised about $795m from its listing on the ADX. That offering came after that of Adnoc Drilling, which reaped $1.1bn from its listing in the same month.
In July, Al Yah Satellite Communications, better known as Yahsat, a unit of Mubadala Investment Company, raised about $730m through its listing.
What to watch out for:
Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways
The hulls of three ships will be used for the roof
The hulls will painted to make the largest Italian tricolour in the country’s history
Several pillars more than 20 metres high will support the structure
Roughly 15 tonnes of steel will be used
Zayed Sustainability Prize
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Mohammed bin Zayed Majlis
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
South Africa v India schedule
Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg
ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion
T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town
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%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EElmawkaa%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Hub71%2C%20Abu%20Dhabi%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ebrahem%20Anwar%2C%20Mahmoud%20Habib%20and%20Mohamed%20Thabet%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20PropTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%3C%2Fstrong%3E%20%24400%2C000%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3E500%20Startups%2C%20Flat6Labs%20and%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%3Cbr%3E%3C%2Fp%3E%0A
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
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Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
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The years Ramadan fell in May
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
