Fertiglobe IPO likely to raise up to $827 million

Fertiglobe announced that it had entered into agreements with a fund managed by Inclusive Capital Partners, Abu Dhabi Pension Fund, and GIC Private Limited
Fertiglobe announced that it had entered into agreements with a fund managed by Inclusive Capital Partners, Abu Dhabi Pension Fund, and GIC Private Limited

By Waheed Abbas

Published: Wed 13 Oct 2021, 5:09 PM

Last updated: Wed 13 Oct 2021, 6:52 PM

Fertiglobe, a joint venture between the Abu Dhabi National Oil Company (Adnoc) and chemical producer OCI plan, on Wednesday announced the price range of Dh2.45 and Dh2.65 per share for its initial public offering (IPO).



This values Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, between $5.5 billion to $6 billion.

The final offer price is expected to be announced on October 20, 2021. Admission of the shares to trading on the Abu Dhabi Securities Exchange is expected on October 27, 2021.

The opening of the subscription period for the IPO commenced on October 13 and will continue until October 18 for individuals and other investors in the UAE. While the second tranche will be offered from October 19 to qualified institutional and other investors in a number of countries, including in the UAE.

The company is selling 1,145,582,011 shares, representing 13.8 per cent of the issued share capital.

Citigroup Global Markets, First Abu Dhabi Bank, HSBC Bank Middle East and Morgan Stanley & Co. International have been appointed as joint global coordinators. EFG-Hermes UAE, Goldman Sachs International and International Securities have been appointed as joint book-runners. First Abu Dhabi Bank has been appointed as the lead receiving bank and Al Maryah Community Bank as a receiving bank.

“Assuming all the shares offered are sold, the size of the offering will be approximately $765 million to $827 million,” the company said in a statement on Wednesday.

Fertiglobe also announced that it had entered into investment agreements with a fund managed by Inclusive Capital Partners, Abu Dhabi Pension Fund, and Singapore’s sovereign wealth fund GIC Private Limited to become cornerstone investors in the IPO with a combined investment of around $231 million (Dh847.77 million)

“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 Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, and Fertiglobe Chairman.

“We look forward to investing in unique value-creating growth opportunities driven by this strategy and returning profits to shareholders through attractive future dividends,” said Ahmed El-Hoshy, CEO of OCI NV and Fertiglobe.

Fertiglobe intends to distribute cash dividends twice each financial year with the first payment in October and the second in April. It expects to distribute a dividend of at least $200 million in April 2022 for the second half of the year ended December 31, 2021.

It expects to distribute a dividend of at least $400 million, increased from the previous guidance of at least $315 million, with 50 per cent of that dividend paid in October 2022 and 50 per cent of that dividend paid in April 2023.

waheedabbas@khaleejtimes.com


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