EFG Hermes has announced that its investment banking division concluded its role as joint bookrunner on Borouge’s $2bn (AED 7.35bn) initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
Borouge, one of the world’s leading providers of advanced polyolefin solutions, listed 3.0 billion shares today — 10% of its share capital — at a share price of AED 2.45, indicating a market capitalization of AED AED 73.6 billion (USD 20 billion).
The transaction marks the largest-ever listing in Abu Dhabi’s history since ADNOC Drilling’s $1.1bn (AED 4bn) IPO.
“We’re extremely proud of this transaction — as we continue to play a proactive role in enriching the Emirati market and the Middle East at large with a multitude of accretive investment prospects,” said Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking. “Despite the macroeconomic turbulence that continues to pose a threat to global markets, the UAE still manages to hold its stance as a promising and resilient equity market. The nation’s recent IPOs, which boomed particularly in 2021, have garnered significant investor interest, solidifying the UAE’s position as a highly favourable destination for equity investors. Borouge plc’s deal comes as the latest addition to a series of megahit offerings in the region that are fueling economic growth, creating jobs, enhancing competitiveness, and broadening investment opportunities in the GCC.”
Established in 1998 as a strategic partnership between state-owned Abu Dhabi National Oil Co. (ADNOC) and Borealis AG (Austrian chemicals and fertilizers manufacturer), Borouge is a global petrochemicals producer specializing in value-creating plastic solutions for agriculture, infrastructure, energy, packaging, mobility, and healthcare purposes. It boasts a team of over 3,100 employees and serves a customer-base spanning over 50 countries across Asia, the Middle East and Africa.
GCC markets have witnessed a surge in Q1 2022, on the back of high oil and commodity prices, with ADX among the leaders, with a 17% gain during the quarter. The ADX market capitalization more than doubled in 2021 and climbed 4.7% to $487bn in March 2022. Its active IPO environment, which included nine listings in 2021 and expects more this year, will further support trading activity on the Abu Dhabi Financial Market in the short term.
Over the last few years, EFG Hermes Investment Banking has led on the most compelling equity transactions in the GCC. It served as advisor and joint bookrunner on the AED 22.4 billion listing of DEWA; joint bookrunner on the AED 2.9 billion listing of Fertiglobe; joint bookrunner on the AED 4.0 billion listing of ADNOC Drilling on the ADX; joint bookrunner on the AED 2.7 billion listing of Yahsat on the ADX; and joint bookrunner and underwriter on Alkhorayef Water & Power Technologies’ $144m IPO on Tadawul.
In 2021, the division closed 41 ECM, DCM, and M&A transactions, with an aggregate value of over $7.9bn. EFG Hermes accumulated number prestigious awards as a result, including ‘Best Investment Bank in Frontier Markets’, ‘Best Debt Bank in Africa by Global Finance’, ‘Best Corporate and Investment Bank in Egypt’ by Asiamoney, as well as ‘Best Investment Bank in Egypt’ and ‘Best Equity House in the UAE’ by EMEA Finance.
