Abu Dhabi-based petrochemicals firm Borouge’s shares jumped as much as 24% in its trading debut on Friday after raising USD 2 bn to become the ADX’s biggest-ever IPO.
Shares hit an intraday high of AED 3.04 from its AED 2.45 IPO price before falling back slightly to close at AED 3.00.
The Abu Dhabi National Oil Company (ADNOC) and its strategic partner, Borealis, announced the listing of the shares of Borouge, their petrochemical joint venture, following the completion of the subscription process for the largest initial public offering ever in Abu Dhabi, and the largest for a petrochemical company in the Middle East.
The initial public offering, which achieved total revenues of more than two billion dollars from offering shares representing 10% of the company’s issued capital, attracted a total demand of more than 83.4 billion dollars (306 billion dirhams), which means that the level of subscription in total exceeded about 42 times the value targeted.
The coverage of the retail segment exceeded the target value 74 times in the largest percentage of demand in the UAE over the past twenty years from this segment.
The Abu Dhabi bourse was supported by stronger oil prices and the success of Borouge's fundraise, said Farah Mourad, senior market analyst of XTB MENA.
Gulf IPOs are on course for a record first half as surging oil prices and foreign inflows protect the energy-rich region from the turbulence that has threatened listing in other parts of the world.
Crude costs, a key catalyst for the Gulf’s monetary market, prolonged a bull run after the EU agreed to a partial and phased ban on Russian oil and China determined to elevate some coronavirus restrictions amid rising demand forward of the height U.S. and European summer season driving season.
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