728 x 90

OCI, Adnoc push ahead with IPO of fertiliser venture

OCI, Adnoc push ahead with IPO of fertiliser venture

Chemical producer OCI NV and Abu Dhabi National Oil Co. are planning to list their Middle Eastern fertiliser venture as soon as October, people with knowledge of the matter said. Advisers to the company, known as Fertiglobe, have been holding early meetings with potential investors and aim to announce plans for the initial public offering

Chemical producer OCI NV and Abu Dhabi National Oil Co. are planning to list their Middle Eastern fertiliser venture as soon as October, people with knowledge of the matter said.

Advisers to the company, known as Fertiglobe, have been holding early meetings with potential investors and aim to announce plans for the initial public offering in the coming weeks, according to the people. Investors could be offered around a 10 percent to 15 percent stake in Fertiglobe through the IPO, the people said, asking not to be identified because the information is private.

Fertiglobe’s owners picked Morgan Stanley, Citigroup Inc., HSBC Holdings Plc and First Abu Dhabi Bank PJSC to work on the IPO, Bloomberg News reported in April. The potential share sale could value Fertiglobe at about $7 billion including debt, people with knowledge of the matter have said.

Adnoc Drilling reveals plans to go ahead with IPO

Moelis has been appointed lead financial adviser on the deal that will list 7.5 percent of issued share capital on the Abu Dhabi Securities Exchange

The IPO could benefit from the rebound in fertiliser prices, which have jumped in the past year as a crop rally helped farmers boost purchases of the nutrient. They’ve been further supported after Hurricane Ida struck the heart of the US fertiliser industry and Storm Nicholas threatened more damage in the Gulf of Mexico.

At the same time, soaring energy prices in Europe have spread to the fertiliser industry, forcing companies including Yara International ASA and CF Industries Holdings Inc. to curtail some output. Fertiglobe has locked in gas supplies from producers in markets including Abu Dhabi and Egypt, giving it a potential advantage over some rivals in Europe, people familiar with the matter said.

Blue Hydrogen

OCI, which is backed by Egyptian billionaire Nassef Sawiris, has a 58 percent stake in Fertiglobe, while Adnoc holds 42 percent. Deliberations are ongoing, and details of the potential share sale could still change, the people said. Representatives for Adnoc and OCI declined to comment.

Fertiglobe operates a fertiliser and chemical production facility in the Ruwais industrial complex, located along the Arabian Gulf coast west of the city of Abu Dhabi. The company is a key part of plans by the United Arab Emirates to manufacture and export blue hydrogen, a fuel usually shipped in the form of ammonia.

The proposed listing comes as Abu Dhabi tries to revive IPOs on its bourse. Satellite operator Yahsat started trading in July, and sovereign wealth fund Mubadala Investment Co. is preparing for a listing of Emirates Global Aluminium that could value the business at more than $15bn, people with knowledge of the matter have said.

In recent years, international and local funds have invested more than $20bn in Adnoc assets such as pipelines and property. Last year, the company sold leasing rights over natural-gas pipelines to a consortium including Global Infrastructure Partners and Brookfield Asset Management Inc. in a deal worth $10.1bn.

Mo
ADMINISTRATOR
PROFILE

Posts Carousel

Latest Posts

Top Authors

  • Mo
    ADMINISTRATOR

Most Commented

Featured Videos