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Sunday, 5 June 2022

Abu Dhabi’s Borouge soars in ADX debut following massive IPO

Borouge shares pop in trading debut: Abu Dhabi-based petrochemicals firm Borouge’s shares jumped as much as 24% in its trading debut on Friday after raising USD 2 bn to become the ADX’s biggest-ever IPO. Shares hit an intraday high of AED 3.04 from its AED 2.45 IPO price before falling back slightly to close at AED 3.00. Borouge ⁠— a joint venture between the Abu Dhabi National Oil Company (Adnoc) and Austrian chemicals firm Borealis ⁠— listed 3 bn shares on the exchange, handing the company a USD 20 bn valuation. Our friends at EFG Hermes were joint bookrunners (pdf) on the transaction.

A record first half for Gulf IPOs: Gulf IPOs are on course for a record first half as surging oil prices and foreign inflows protect the energy-rich region from the turbulence that has threatened listing in other parts of the world.

It looks like the global chip shortage won’t be easing anytime soon: Moscow has curtailed until the end of the year exports to “unfriendly countries” of key noble gases used to make semiconductors — of which Russia accounts for 30% of global supply, Reuters reports.

Down

EGX30

10,008

-0.8% (YTD: -16.3%)

Up

USD (CBE)

Buy 18.60

Sell 18.68

Up

USD at CIB

Buy 18.62

Sell 18.68

None

Interest rates CBE

11.25% deposit

12.25% lending

Down

Tadawul

12,605

-1.3% (YTD: +11.7%)

Down

ADX

9,837

-0.2% (YTD: +15.9%)

Down

DFM

3,387

-0.3% (YTD: +6.0%)

Down

S&P 500

4,109

-1.6% (YTD: -13.8%)

Down

FTSE 100

7,533

-1.0% (YTD: +2.0%)

Down

Euro Stoxx 50

3,784

-0.3% (YTD: -12.0%)

Up

Brent crude

USD 119.72

+1.8%

Up

Natural gas (Nymex)

USD 8.52

+0.5%

Down

Gold

USD 1,850.20

-1.1%

Up

BTC

USD 29,752

+0.6% (YTD: -35.3%)

THE CLOSING BELL-

The EGX30 fell 0.8% at Thursday’s close on turnover of EGP 447 mn (47% below the 90-day average). Local investors were net buyers. The index is down 16.3% YTD.

In the green: Ibnsina Pharma (+7.1%), Madinet Nasr Housing (+6.3%) and Palm Hills Development (+3.6%).

In the red: CIB (-2.4%), EFG Hermes (-2.0%) and Oriental Weavers (-1.7%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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