Fertiglobe, the world’s largest exporter of urea and ammonia by sea, and the largest producer of nitrogenous fertilizers in the Middle East and North Africa in terms of production capacity, plans to join the Abu Dhabi Stock Exchange, selling 13.8% of the company’s capital.
The IPO is open to individuals and other investors in the United Arab Emirates as part of a retail offering and to institutional and other qualified investors as part of the to qualified investor offering, said the joint venture between the OCI and the Abu Dhabi National Oil Company, in a statement. Tuesday.
Adnoc has a 42 percent stake in Fertiglobe, with OCI retaining the 58 percent majority. OCI is listed on the Euronext Amsterdam stock exchange and has Egyptian billionaire Nassef Sawiris as its main shareholder. The export-oriented nitrogen fertilizer business was established in 2019 following the merger of Adnoc’s fertilizer business and OCI’s nitrogen fertilizer business in the Middle East. Fertiglobe’s head office is located in the Abu Dhabi Global Market.
The offering share price will be determined once the book building process is complete. Adnoc and OCI reserve the right to change the size of the offer at any time before pricing. OCI is expected to continue to indirectly hold the majority of Fertiglobe’s share capital after the IPO, while Adnoc is expected to indirectly hold at least 36.2% of Fertiglobe’s share capital after the offer.
Fertiglobe’s ADX listing will be the first of a land-based free zone company in the UAE and strategically positions the company to capitalize on new demand for low-carbon ammonia, an integral part of the country’s economy. clean hydrogen, in which blue and green ammonia serves as an efficient energy carrier and as a clean fuel. Listing will also allow the company to leverage the strengths and global reach of both shareholders.
“Fertiglobe offers a unique investment opportunity to access an increasingly critical global sector, while also benefiting from emerging opportunities in the low-carbon ammonia value chain and the hydrogen economy. Said Dr Sultan Al Jaber, Minister of Industry and Advanced Technologies and Director General. and CEO of the Adnoc group. “Adnoc, like OCI, will remain a major long-term and committed shareholder in Fertiglobe and will continue to partner with the company on emerging opportunities, including the development of a new state-of-the-art blue ammonia project. in Ta’ziz in Ruwais, Abu Dhabi.
Ta’ziz Industrial Chemicals Zone in Ruwais, is developed by Adnoc and the holding company ADQ to manufacture downstream products. This year, Adnoc announced the development of the Blue Ammonia Project to advance the hydrogen economy in the UAE.
Blue ammonia is a more easily transportable fuel source based on blue hydrogen, a byproduct of carbon dioxide that has been captured and stored. The blue appearance refers to hydrogen derived from natural gas raw materials. The plant will have a production capacity of 1,000 kilotons per year.
“We are delighted to announce Fertiglobe’s intention … Fertiglobe is increasingly becoming the ideal platform to seize the opportunities offered by the emerging but rapidly growing hydrogen economy and generate strong flows of hydrogen. treasury, ”said Mr. Sawiris, OCI Executive Chairman and Executive Vice President. president of Fertiglobe.
“As a pure nitrogen company and a pioneer in the field of clean ammonia, it improves Fertiglobe’s visibility in the market, including its financial performance attributes that support a strong dividend capacity, commercial positioning and unlocking various strategic growth paths. “
The fertilizer joint venture was formed following Adnoc’s plans in 2019 to invest Dh 165 billion in the development of its downstream business over the next five years. The move came amid a growing pivot towards building a stronger product portfolio among Middle Eastern oil exporters.
Adnoc has sought ways to monetize some of its non-core assets as it seeks to diversify its revenue streams and bring in foreign capital to grow its business.
Last year, Adnoc attracted a consortium of the world’s leading infrastructure and sovereign funds to its pipelines. The $ 20.7 billion deal was the largest energy deal of its kind in 2020. It followed a 2019 deal to sell a stake in its pipelines.
“Fertiglobe is a precursor in the production of blue and green ammonia, which results in little or no carbon emissions and has a multitude of uses as a hydrogen carrier and clean fuel,” said Ahmed El Hoshy, Director General of OCI and Fertiglobe.
“Ammonia, for example, is becoming a clean alternative to heavy fuel oil used in the difficult-to-decarbonize maritime transport sector, where Fertiglobe is particularly well positioned given its location on global trade routes.
“The IPO not only provides access to an increasingly critical global sector that ensures global food security, but it also supports the global energy transition.”
Citigroup, First Abu Dhabi Bank, HSBC and Morgan Stanley have been appointed global IPO coordinators. EFG-Hermes, Goldman Sachs and International Securities have been appointed associate bookkeepers. First Abu Dhabi Bank is the primary receiving bank and Al Maryah Community Bank has been designated as the receiving bank.
The launch of the Fertiglobe offering follows the Adnoc Drilling IPO in September, in which the company raised more than $ 1.1 billion through an 11% sale, the offer being more than 31 times oversubscribed.
Fertiglobe’s upcoming IPO illustrates “the central role of Adnoc in growing and diversifying the national economy, supporting the development of the UAE’s private sector and equity capital markets, and attracting investment. direct foreigners to Abu Dhabi and the United Arab Emirates, fully aligned with the recent announced the United Arab Emirates’ ‘Principles of the 50’, ”said Dr Sultan.
Update: October 5, 2021, 3:52 am