Shares of Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, surged as much as 23 per cent as the company made its debut on the Abu Dhabi Securities Exchange on Friday.
The company, which started trading under the ticker symbol “Borouge”, ended the day with a market value of about Dh90.17 billion ($24.57bn) and its share price gaining more than 22 per cent to settle at Dh3.
The company's initial public offering “demonstrates our ongoing contribution to support the diversification of Abu Dhabi’s buoyant and dynamic equity capital market”, said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc managing director and group chief executive, and Borouge chairman.
The listing “reinforces Adnoc's continued role as the critical enabler of growth and expansion of the UAE economy and private sector, and in solidifying Abu Dhabi’s position as a global investment destination of choice”, Dr Sultan said on Friday.
“As part of our ongoing value-creation programme, we will continue to unlock opportunities to expand our investor base and access to capital, while providing domestic and international investors with the opportunity to invest and partake in the growth of our world-class portfolio of energy assets.”
Borouge successfully closed its $2bn listing on Tuesday, the biggest share sale on the ADX. The IPO, which was about 42 times oversubscribed, is the largest in Abu Dhabi since Adnoc Drilling’s $1.1bn offering.
The company sold about three billion shares to the public and had set the price per share for its 10 per cent float at Dh2.45 ($0.67). The proceeds of the transactions will go to selling shareholders ― Adnoc and Borealis Middle East Holding, a wholly owned subsidiary of Borealis.
Total gross demand for the IPO, which also attracted India's billionaire Adani family, amounted to more than $83.4bn.
“High investor interest in Borouge demonstrates the untapped potential and value of UAE companies for local and global investors. This is a defining moment for the UAE’s capital and regulatory markets,” said Ahmed Al Zaabi, chairman of the Abu Dhabi Global Market, where Borouge is registered.
Borouge is the fourth Adnoc subsidiary that has listed on the ADX, the second-biggest Arab stock market. Adnoc retains 54 per cent ownership in the company while Borealis controls 36 per cent.
Established in 1998, Borouge is a petrochemical company that employs more than 3,100 people and serves customers in more than 50 countries across the Middle East, Africa and Asia.
It provides polyolefin solutions for the agriculture, infrastructure, energy, advanced packaging, mobility and healthcare industries.
“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,” said Mohamed Fahmi, EFG Hermes’ co-head of investment banking.
“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.”
The Abu Dhabi bourse gained 17 per cent in the first quarter of this year, with its market capitalisation more than doubling in 2021. The ADX had a market value of about Dh2.03 trillion ($554bn) on Friday.
In addition to Adnoc Drilling's debut on the exchange last October, eight other companies listed on the ADX in 2021.
Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, raised about $795 million from its listing.
Alpha Dhabi, the property and construction company owned by International Holding Company, and Yahsat, the satellite operator owned by Mubadala Investment Company, were some of the other big companies that went public on the ADX.
Six debt instruments and an exchange-traded fund were also added to the bourse in 2021, bringing the number of publicly listed companies to 69, debt instruments to 27, private companies to 13 and exchange-traded funds to two.
For the 2022 financial year, Borouge expects to pay fixed dividends worth $325m in September and $650m in March next year.
For 2023, the company aims to pay a dividend of no less than $1.3bn, it said this month when it announced the intention to float its shares.
“We are proud to have completed this highly successful IPO and … with significant cornerstone commitments from high-quality investors a clear indicator of the strength of our investment thesis and strategic road map,” said Hazeem Al Suwaidi, chief executive of Borouge.
“We will continue to focus on driving our strategy to grow our innovative polyolefins platform and lead the petrochemical industry transition.”
Specs
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'Will%20of%20the%20People'
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UAE currency: the story behind the money in your pockets
PAST 10 BRITISH GRAND PRIX WINNERS
2016 - Lewis Hamilton (Mercedes-GP)
2015 - Lewis Hamilton (Mercedes-GP)
2014 - Lewis Hamilton (Mercedes-GP)
2013 - Nico Rosberg (Mercedes-GP)
2012 - Mark Webber (Red Bull Racing)
2011 - Fernando Alonso (Ferrari)
2010 - Mark Webber (Red Bull Racing)
2009 - Sebastian Vettel (Red Bull Racing)
2008 - Lewis Hamilton (McLaren)
2007 - Kimi Raikkonen (Ferrari)
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COMPANY%20PROFILE
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The specs
Engine: 3.8-litre V6
Power: 295hp at 6,000rpm
Torque: 355Nm at 5,200rpm
Transmission: 8-speed auto
Fuel consumption: 10.7L/100km
Price: Dh179,999-plus
On sale: now
Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House
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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Squads
India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.
Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.
UAE currency: the story behind the money in your pockets
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
How to tell if your child is being bullied at school
Sudden change in behaviour or displays higher levels of stress or anxiety
Shows signs of depression or isolation
Ability to sleep well diminishes
Academic performance begins to deteriorate
Changes in eating habits
Struggles to concentrate
Refuses to go to school
Behaviour changes and is aggressive towards siblings
Begins to use language they do not normally use
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
The%20specs
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ATP WORLD No 1
2004 Roger Federer
2005 Roger Federer
2006 Roger Federer
2007 Roger Federer
2008 Rafael Nadal
2009 Roger Federer
2010 Rafael Nadal
2011 Novak Djokovic
2012 Novak Djokovic
2013 Rafael Nadal
2014 Novak Djokovic
2015 Novak Djokovic
2016 Andy Murray
2017 Rafael Nadal
2018 Novak Djokovic
2019 Rafael Nadal
All Blacks line-up for third Test
J Barrett; I Dagg, A Lienert-Brown, N Laumape, J Savea; B Barrett, A Smith; J Moody, C Taylor, O Franks, B Retallick, S Whitelock, J Kaino, S Cane, K Read (capt).
Replacements: N Harris, W Crockett, C Faumuina, S Barrett, A Savea, TJ Perenara, A Cruden, M Fekitoa.
Match info
Liverpool 3
Hoedt (10' og), Matip (21'), Salah (45 3')
Southampton 0
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