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Banks including Citigroup Inc., First Abu Dhabi Bank, HSBC Holdings Plc and Morgan Stanley are set to share up to $30 million in fees for working on the initial public offering of chemical producer Borouge Plc in Abu Dhabi.

The share sale is seeking to raise $2 billion, set to be the biggest listing in the United Arab Emirates’ capital. Borouge said the joint bookrunners would receive a 1.25% underwriting commission as well as a discretionary fee of up to 0.25% of the deal size.

That compares with a $97 million payout banks including Citigroup, HSBC and Emirates NBD were offered for underwriting the $6.1 billion IPO of Dubai Electricity & Water Authority in April. Underwriting fees in the Middle East tend to be lower than in other markets such as the U.S., where banks can earn around 5% of deal value for an IPO. 

The joint global coodinators of the Borouge IPO are Citigroup, First Abu Dhabi Bank, HSBC and Morgan Stanley. Typically they receive most of the fee proceeds. The joint bookrunners are Abu Dhabi Commercial Bank, Arqaam Capital, EFG-Hermes, Goldman Sachs, and International Securities.

The IPO drew in investors including the family of Indian billionaire Gautam Adani, who committed $75 million to the deal. Investors including BlackRock Inc. and Fidelity are also bidding for Borouge shares, according to people with knowledge of the matter.

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