Abu Dhabi-based chemical company Fertiglobe is planning to float a 13.8 percent stake on the Abu Dhabi Securities Exchange (ADX) through an initial public offering (IPO).
The company said in a statement that this offering is open to UAE citizens and residents, as well as domestic and international institutional investors. According to the reports, the offer is expected to open on 13th October 2021, subject to regulatory approvals and other necessary considerations.
Fertiglobe is the world’s largest export-focused nitrogen fertilizer platform and the largest producer in the Middle East and North Africa with a combined production capacity of 6.5 million tons of urea and merchant ammonia.
Formed in 2019, Fertiglobe is a strategic collaboration between OCI (58 percent) and ADNOC (42 percent) that combines four strategically situated production sites across the MENA region to create a single platform that has the largest net ammonia export production capacity in the region.
According to the statement, through the potential offering, investors will be able to buy shares in a prominent player in the global nitrogen fertilizer and ammonia sector with an attractive growth story and investment opportunity.
Dr. Sultan Al Jaber Chairman – Fertiglobe UAE Minister of Industry & Advanced Technology
“The launch of Fertiglobe’s IPO follows the very recent and highly successful listing of ADNOC Drilling on the Abu Dhabi Securities Exchange, exemplifying ADNOC’s pivotal role in driving the growth and diversification of the nation’s economy, supporting the further development of the UAE’s private sector and equity capital markets, and attracting foreign direct investment into Abu Dhabi and the UAE, fully aligned with the recently announced UAE ‘Principles of the 50’. The Offering will be the first listing of a free zone company onshore in the UAE and is open to all citizens and residents of the UAE as well as local and international institutional investors in several countries. 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.”
“ADNOC, like OCI, will remain a long-term and committed major 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 at TA’ZIZ in Ruwais, Abu Dhabi,” Dr. Al Jaber added.
Mr. Ahmed EL Hoshy, OCI NV CEO and Fertiglobe CEO noted, “Fertiglobe is an early mover in production of blue and green ammonia, which results in low or no carbon and has a myriad of uses as a hydrogen carrier and clean fuel, facilitating GHG reductions in industries that make up 80 percent of current global emissions. Ammonia is for instance emerging as a clean alternative to heavy fuel oil used in the hard-to-decarbonize shipping sector, where Fertiglobe is particularly well-positioned given its locations on global trade routes.”
“As pure-play nitrogen and an early mover in clean ammonia, it enhances the visibility of Fertiglobe in the marketplace including its financial performance attributes that support a robust dividend capacity, commercial positioning, and unlocking of various strategic avenues of growth. Importantly, Fertiglobe continues to leverage key strengths from both ADNOC and OCI who have a shared vision of value creation and sustainable development,” remarked Mr. Nassef Sawiris, Executive Chairman of OCI NV and Vice Chairman of Fertiglobe.
