EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced today that its Investment Banking division successfully concluded its role as joint bookrunner on Borouge plc’s USD 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 USD 1.1 billion (AED 4 billion) IPO.
Borouge, one of the world’s leading providers of advanced polyolefin solutions, listed 3.0 billion shares today — 10% of its share capital — at a share price of AED 2.45, indicating a market capitalization of AED AED 73.6 billion (USD 20 billion).
“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 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.”
Established in 1998 as a strategic partnership between state-owned Abu Dhabi National Oil Co. (ADNOC) and Borealis AG (Austrian chemicals and fertilizers manufacturer), Borouge plc is a global petrochemicals producer specializing in value-creating plastic solutions for agriculture, infrastructure, energy, packaging, mobility, and healthcare purposes. It boasts a team of over 3,100 employees and serves a customer-base spanning over 50 countries across Asia, the Middle East and Africa.
GCC markets have witnessed a surge in Q1 2022, on the back of high oil and commodity prices, with Abu Dhabi Securities Exchange among the leaders, with a 17% gain during the quarter. Its market capitalization more than doubled in 2021 and climbed 4.7% to Dh1.79 trillion (USD 487 billion) in March 2022. Its active IPO environment, which included nine listings in 2021 and expects more this year, will further support trading activity on the Abu Dhabi Financial Market in the short term.
Over the last few years, EFG Hermes Investment Banking has led on the most compelling equity transactions in the GCC. It served as advisor and joint bookrunner on the AED 22.4 billion listing of DEWA; joint bookrunner on the AED 2.9 billion listing of Fertiglobe; joint bookrunner on the AED 4.0 billion listing of ADNOC Drilling on the ADX; joint bookrunner on the AED 2.7 billion listing of Yahsat on the ADX; and joint bookrunner and underwriter on Alkhorayef Water & Power Technologies’ USD 144 million IPO on Tadawul.
In 2021, the division closed 41 ECM, DCM, and M&A transactions, with an aggregate value of over USD 7.9 billion. EFG Hermes accumulated number prestigious awards as a result, including ‘Best Investment Bank in Frontier Markets’, ‘Best Debt Bank in Africa by Global Finance’, ‘Best Corporate and Investment Bank in Egypt’ by Asiamoney, as well as ‘Best Investment Bank in Egypt’ and ‘Best Equity House in the UAE’ by EMEA Finance.
EFG Hermes has been growing exponentially alongside the UAE, and, since its entry in 2002, the firm soon established itself as the leading investment bank in MENA. Each year the firm hosts its One-on-One Conference in the UAE, the world’s largest investment forum dedicated to Frontier Emerging Markets (FEM), which offers a one-of-a-kind opportunity for investors to meet companies from some of the world’s most dynamic Frontier Emerging Markets.