Borough of the United Arab Emirates will be the latest IPO in a wave of Middle East listings

The lure of high dividends has been a major attraction for investors around the world in the recent wave of mega listings across the Gulf region.

Rustam Azmi | Getty Images

DUBAI, United Arab Emirates – Petrochemical business Borough will list on the Abu Dhabi Stock Exchange next month, marking the latest in a series of mega public offers across the Middle East.

Boroughs, a joint venture between Abu Dhabi National Oil Company and Austrian Borealis, will sell 3 billion shares in the initial public offering, which will represent 10% of the shares. No price range offered.

“Together with our long-term partner Borialis, I am pleased to announce our intention to partner with the minority in Borough,” said Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, in a statement. Wednesday.

“With our recently announced 25% equity investment in Boroge and Borealis, ADNOC is poised to capitalize on significant industrial and consumer-led growth in the petrochemical sector in the coming decades,” he added.

The report said the IPO could raise as much as 2 billion if Abu Dhabi were listed on the stock exchange on June 3. After the listing, ADNOC is expected to own about 54% of Borough’s share capital, while Borealis will own approximately 36%.

Borough CEO Hajim Sultan Al Suwaidi said in a statement: “Borough has become one of the leading petrochemical companies in the world that was established in 1998 to develop polyolefin solutions, supported by our shareholders, ADNOC and Borealis.”

“Demand for our innovative polyolefin solutions will continue to grow in the coming years, driven by our distinct products and technologies, our commitment to sustainable solutions and operations, and strong industry growth,” he added.

ADNOC and Borealis said the subscription period for retail investors will be from May 23 to May 28, where eligible investors will be able to buy shares from May 23 to May 30. Borough said investors will receive dividends twice each fiscal year, including a fixed dividend of $ 325 million in September 2022 and $ 650 million in March 2023.

Boroughs has facilities in Abu Dhabi, Shanghai and Singapore, employs more than 3,000 people and has customers in over 50 countries across the Middle East, Africa and Asia.

The waves of the Middle East

The lure of high dividends is a major attraction for investors around the world in the recent wave of mega-listings across the Gulf region, led by Saudi Arabia and the United Arab Emirates.

Both countries are actively taking advantage of hot demand and high energy prices to bring state-owned companies to the public.

The Borough IPO also marks the latest in a series of public offers by the Abu Dhabi ADNOC Group, including a list of ADNOC distributions, last year’s N 1.1 billion offer of ADNOC drilling and a recent list of fertilizer business Fertiglobe as ADNOC seeks to unlock. Value throughout his business.

The February listing of the port of Abu Dhabi also marked a milestone in the development of the UAE capital market, which has been improving in depth and sophistication in recent years.

Neighboring Dubai has also begun pushing for a major IPO to tap into the needs of investors in the region, with state utility DEWA launching a $ 6.1 billion offer last month.

Dubai plans to go public with about a dozen state-owned companies in the coming months and recently launched a SPAC framework to attract new investment.

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