Stock - Borouge
Borouge operates a massive complex at Ruwais, Abu Dhabi, and where a new round of expansion is ongoing. Image Credit: Bloomberg

Abu Dhabi: UAE chemical producer Borouge's $2 billion IPO is attracting interest from BlackRock Inc. and Fidelity, as fund managers scramble for a slice of the latest hot Middle Eastern listing. BlackRock and Fidelity are among international funds bidding to get stock in the offering.

Borouge had already attracted orders from institutional investors for at least 17 times the amount of stock on offer as of mid-day Wednesday, the third day of bookbuilding, according to the people. Borouge makes specialty plastics for manufacturing and consumer goods at its production facilities in Abu Dhabi. Its owners - Abu Dhabi National Oil Co. and Austrian chemical maker Borealis - are seeking to value Borouge at about $20 billion in what would be the emirate's biggest-ever listing.

Adnoc and Borealis aren't planning to boost the size of the deal to meet excess demand and will likely stick to their initial plan to list 10 per cent of the company, the people said. Retail investors have until May 28 to place orders and institutional investors have until May 30, meaning to demand for shares is likely to rise.

The deal is the latest in a string of blockbuster listings from the UAE and Saudi Arabia, even as volatility rocks markets elsewhere.

'Cornerstone' investors
Seven cornerstone investors agreed to subscribe for $570 million worth of shares in the Borouge IPO. The family of Indian billionaire Gautam Adani has committed $75 million, while Abu Dhabi wealth fund ADQ will buy $120 million of shares and Alpha Dhabi Holding has committed $100 million.