EFG Hermes ends role as joint bookrunner on Borouge’s $2bn IPO

Kayode Tokede
EFG Hermes, the leading franchised investment bank in Frontier Emerging Markets (FEM), announced that its Investment Banking division has completed its role as Joint Bookrunner on Borouge plc’s $2 billion initial public offering (AED 7, 35 billion) for Abu Dhabi Securities has successfully completed exchange (ADX).

The transaction is the largest IPO in Abu Dhabi’s history since ADNOC Drilling’s IPO, valued at US$1.1 billion (AED4 billion).

Borouge, one of the world’s leading providers of advanced polyolefin solutions, listed 3.0 billion shares – 10 percent of its share capital – at a share price of AED2.45, indicating a market capitalization of AED73.6 billion (US$20 billion).

Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes, said in a statement: “We are 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 variety of positive investment prospects .”

He further said: “Despite the macroeconomic turmoil that continues to pose a threat to global markets, the UAE still manages to maintain its stance as a promising and resilient stock market.

“The country’s recent IPOs, booming particularly in 2021, have attracted significant investor interest and cemented the UAE’s position as a highly favorable destination for equity investors.

“Borouge plc’s deal is the latest in a series of megahit deals in the region that will spur economic growth, create jobs, boost competitiveness and expand investment opportunities in the GCC.”

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