EFG Hermes concludes role as joint bookrunner on $2bn Borouge IPO

EFG Hermes’ investment banking division has successfully concluded its role as joint bookrunner on Borouge’s $2bn (Dhs7.35bn) 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 $1.1bn (Dhs4bn) IPO.

Borouge is a global petrochemicals producer specialising in value-creating plastic solutions for agriculture, infrastructure, energy, packaging, mobility, and healthcare purposes. It has a team of over 3,100 employees and serves a customer-base spanning over 50 countries across Asia, the Middle East and Africa.

The company listed 3 billion shares on June 3  — 10 per cent of its share capital — at a share price of Dhs2.45.

“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’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.”

EFG Hermes Investment Banking has also served as advisor and joint bookrunner on the Dhs22.4bn listing of DEWA; joint bookrunner on the Dhs2.9bn listing of Fertiglobe; joint bookrunner on the Dhs4bn listing of ADNOC Drilling on ADX; joint bookrunner on the Dhs2.7bn listing of Yahsat on ADX; and joint bookrunner and underwriter on Alkhorayef Water & Power Technologies’ $144m IPO on Tadawul.

Read: EFG Hermes completes advisory on $6.1bn DEWA IPO