(Bloomberg) -- Abu Dhabi National Oil Co. and Borealis AG are weighing an initial public offering of their plastics joint venture Borouge, according to people familiar with the matter.
The state-owned energy company and Austrian chemicals group are exploring options for the business, including a possible IPO next year, the people said, asking not to be identified discussing confidential information.
Deliberations are ongoing and no final decisions on the timeframe for any listing have been taken, according to the people. Adnoc and Borealis could also explore alternatives to an IPO, they said. Representatives for Adnoc and Borealis declined to comment.
Founded in the late 1990s, Borouge manufactures plastics used in everything from automobiles and food packaging to medicine vials and piping systems. Its main plant is in Abu Dhabi. The company employs more than 3,000 people and serves customers across the Middle East, Africa and Asia.
Adnoc, which pumps almost all the oil and natural gas in the United Arab Emirates, is increasingly seeking to raise money from its assets to help the government fund efforts to diversify the economy. Since mid-2020, it's raised around $15 billion by selling leasing rights over pipelines and property to the likes of Brookfield Asset Management Inc. and Apollo Global Management Inc.
In October, Adnoc and Amsterdam-based OCI NV raised $795 million by listing their Middle Eastern fertilizer venture Fertiglobe Holding, which drew about $17 billion of orders from investors. Earlier that month, the energy group listed its Adnoc Drilling in another IPO that saw strong demand.
A surge in demand for IPOs in the Middle East has seen Abu Dhabi catching up with regional leader Saudi Arabia. Satellite operator Yahsat kicked off the frenzy in July, becoming the first listing on Abu Dhabi's exchange in nearly four years. Nearby Dubai, meanwhile, plans to offer stakes in 10 state-owned companies in a move aimed at boosting trading volumes on the city's financial markets to 3 trillion dirhams ($817 billion).
Read more: Dubai Aims to List Utility DEWA at $25 Billion Valuation
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