Fertiglobe Plc, a UAE-based fertiliser joint venture of Abu Dhabi National Oil Company (ADNOC) and Egyptian billionaire Nassef Sawiris-led OCI NV, is set to float its initial public offering later this month.
The company will list its shares on the Abu Dhabi Securities Exchange after an IPO where its two principal shareholders will offload a total of 13.6% stake. Fertiglobe itself isn’t issuing any new shares, so won’t get any proceeds from the IPO.
After the IPO, OCI will continue to own a majority stake in the company while ADNOC’s ownership will come down to 36.2%. Amsterdam-listed OCI currently holds a 58% stake in Fertiglobe while ADNOC owns 42%.
The actual size of the IPO is not clear yet as the share price will be determined after the close of a book building process. The IPO is open to individuals and other investors in the UAE as part of a retail offering and to qualified institutional and other investors as part of the qualified investor offering.
Fertiglobe is one of the world’s biggest seaborne exporters of urea and ammonia combined. It also produces clean ammonia. In June this year, it joined a project by ADNOC and Abu Dhabi sovereign wealth fund ADQ to develop a blue ammonia facility in Ruwais, Abu Dhabi with a capacity of one million tonnes a year.
The fertiliser company generated cash flow from operations of $520.8 million and $482.0 million, respectively, for the year through December 2020 and for the six months ended June 30, 2021. It recorded adjusted EBITDA margins of 29.2% and 37.6%, respectively, for 2020 and for the six months through June 2021.
The IPO is the third such sale of stake by ADNOC in one of its associate companies and subsidiaries, and is part of a strategic process by the energy giant to offload its non-core assets. Last month, ADNOC raised $1.1 billion from an IPO of unit ADNOC Drilling. In 2017, it had raised $851 million selling a 10% stake in ADNOC Distribution.