EFG Hermes Completes Role as Joint Bookrunner in $2bn Borouge’s IPO

Kayode Tokede
EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced that its Investment Banking division successfully concluded its role as joint bookrunner on Borouge plc’s $2 billion (AED 7.35 billion) Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The transaction marks the largest-ever listing in Abu Dhabi’s history since ADNOC Drilling’s $1.1 billion (AED 4 billion) IPO.

Borouge, one of the world’s leading providers of advanced polyolefin solutions, listed 3.0 billion shares — 10per cent of its share capital — at a share price of AED 2.45, indicating a market capitalization of AED AED 73.6 billion ($20 billion).

EFG Hermes’ Co-Head of Investment Banking, Mohamed Fahmi in a statement said,“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.”

He said further that, “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.”