An investor monitors a stock information screen at the Abu Dhabi Securities Exchange June 25, 2014.
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May 27 (Reuters) – Shares in Abu Dhabi rallied ahead of petrochemicals company Borouge’s biggest-ever initial public offering (IPO) on Friday, although the Dubai index ended flat.
Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemical joint venture with Austria’s Borealis, known as Borouge.
Borouge said Monday it had set the offering price for its IPO, showing it could raise about $2 billion in the deal, and attracted seven cornerstone investors. Continue reading
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According to Daniel Takieddine, CEO of MENA BDSwiss, investors are increasingly viewing Borouge’s IPO as a catalyst and the listing could attract liquidity and help the main index recover from its previous high.
In Abu Dhabi, the index (.FTFADGI) rose 1.6%, with First Abu Dhabi Bank (FAB) (FAB.AD) gaining 6%, its biggest intraday gain in nearly three months.
According to a media report, FAB, the UAE’s largest lender, will share up to $30 million in fees with other banks to work on Borouge’s IPO.
Elsewhere, Al Seer Marine Supplies And Equipment (ASM.AD) rose nearly 2% after it acquired two LPG tankers valued at 246 million dirhams ($66.98 million).
On the other hand, the Abu Dhabi Index posted a 2.5% weekly loss, its fourth weekly loss of five.
However, Dubai’s main market index (.DFMGI) closed unchanged.
Logistics company Aramex rose 4.8% after the company raised its foreign ownership limit to 100% from a previous 49%.
($1 = 3.6726 UAE Dirham)
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Reporting by Mohammad Edrees in Bengaluru; Editing by Krishna Chandra Eluri
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