Exclusive: Abu Dhabi firm to list its fertilizer venture in October

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Exclusive: Abu Dhabi firm to list its fertilizer venture in October

Managing director OCI NV and Abu Dhabi National Oil Co. are planning to list their Middle Eastern fertilizer 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 a cash value of Fertiglobe by the IPO, people said, and asked not to be identified because the information is private.

The investors selected First Abu Dhabi BankAbu Dhabi Bank PJSC and Morgan Stanley to work for the IPO, Bloomberg News reported in April. The potential share sale could include about $7 billion in debt, people with knowledge of the matter have said.

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

At the same time, soaring energy prices in Europe have spread to the fertilizer industry, forcing companies including Yara International ASA and CF Industries Holdings Inc. to curtail some output. Fertiglobe has locked in supply of gas 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.

OCI, which is backed by Egyptian billionaire Nassef Sawiris, has a 58% stake in Fertiglobe while Adnoc holds 42%. If share purchase is conducted at the current S&P, decisions are still ongoing and details of the potential share sale could change, the people said. Adnoc and OCI representatives declined to comment on the situation.

Fertiglobe operates a fertilizer and chemical production plant located in the Ruwais Industrial Complex, located along the Persian Gulf Coast west of Abu Dhabi City. The company is a key part of plans by the United Arab Emirates to manufacture and export blue hydrogen, a fuel typically packaged in ammonia in the form of blue hydrogen.

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 $15 billion, people with knowledge of the matter have said.

In recent years, international and local funds have invested more than $20 billion in Adnoc assets such as pipelines and property. The company sold the rights of natural gas pipelines to a consortium including Global Infrastructure Partners and Brookfield Asset Management Inc. in a deal worth $10.1 billion last year, in a deal valued at around $350 million.