ADNOC, Borealis raise over $2bn from petchem IPO

Abu Dhabi national oil company ADNOC and its Austrian partner Borealis have raised more than $2bn from an initial public offering at their petrochemicals joint venture Borouge, ADNOC reported on May 31.

The pair sold a 10% interest in Borouge, which produces petrochemicals from hydrocarbon feedstocks in Ruwais in the UAE and Shanghai in China. The joint venture's flagship upcoming project is Borouge 4 in Ruwais, which is set to raise its annual polyolefin production capacity from 5 to 6.4mn metric tons annually by 2025.

Borouge will be listed on the Abu Dhabi securities exchange on June 3, ADNOC said. ADNOC will continue to own a 54% interest in Borouge, while Borealis will hold a 36% interest. ADNOC also has a 25% stake in Borealis, while a further 75% is held by Austria's OMV.

ADNOC has been divesting shares in key oil and gas projects and infrastructure in order to raise funds to spend on its expansion plans, which include a target to ramp up its oil production from 4mn barrels/day at present to 5mn b/d by the end of the decade. The company has already held IPOs at its fuel retail, drilling and fertiliser subsidiaries.