ADNOC and OCI’s joint venture, Fertiglobe, is predicted to raise up to $830 million in an initial public offering. This prediction comes after the company priced its shares, consequently selling more than 1.145 billion shares, representing 13.8% of the company’s share capital. Implying an equity valuation of around $6 billion, Fertiglobe’s shares are priced between Dh 2.45 and Dh 2.65. According to the minimum price range, the company is expected to raise at least $765 million from the listings. After the listing, ADNOC will hold a 36.2% stake, and OCI will own 50% plus one share.
“This IPO represents a milestone moment for ADNOC and Fertiglobe, as well as for the growing depth and development of the UAE’s equity capital markets,” said Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), and Chairman at Fertiglobe.
Formed in 2019 as part of a strategic partnership between ADNOC’s fertilizer arm and Dutch Chemical producer OCI’s Middle East nitrogen fertilizer business, Fertiglobe is the world’s largest export-focused nitrogen fertilizer platform and the largest producer in the MENA region. It is the second company backed by ADNOC seeking a listing on the Abu Dhabi Securities Exchange (ADX). The company plans on capitalizing on the newly emerging demand for low-carbon ammonia, which is an essential part of the clean hydrogen economy.
They have also stated that they’ve secured three cornerstone investors: Inclusive Capital Partners, Abu Dhabi Pension Fund, and Singapore sovereign wealth fund GIC. The three investors have been included with commitments of $231 million.
“Our complementary partnership with ADNOC has grown from strength to strength, and Fertiglobe’s listing on the ADX, a pre-eminent financial hub in the region, will bolster visibility in the global markets,” says Egyptian billionaire Nassef Sawiris, the biggest shareholder of Fertiglobe.
Fertiglobe has also stated their intention to initiate Jeffrey W. Ubben, an American businessman and well-known activist hedge fund manager, into their board of directors. Ubben is known for co-founding the socially and economically conscious fund, Inclusive Capital Partners and growing ValueAct Capital into one of the world’s most powerful activist hedge funds as its Chairman.
Global coordinators Citigroup, First Abu Dhabi Bank, HSBC Bank Middle East Ltd., and Morgan Stanley & Co. International PLC will be managing the deal. International Securities L.L.C, EFG-Hermes UAE Limited, and Goldman Sachs International have also been announced as joint book-runners. The final offer price is expected to be announced on 20th October, and the listing of shares in Abu Dhabi will be revealed on October 27th.