AMSTERDAM: Fertiglobe has become the first free zone company to list onshore in the UAE, with trading in the shares to commence on the Abu Dhabi Exchange (ADX) on Wednesday.
The Initial Public Offering (IPO) was oversubscribed more than 22 times in aggregate, and 32 times for the Qualified Investor tranche (excluding cornerstone investors).
OCI N.V. announced that Fertiglobe, the partnership between OCI and Abu Dhabi National Oil Company (ADNOC), listed on the Abu Dhabi Securities Exchange (ADX).
The initial public offering (IPO), which raised over $795 million, experienced strong demand from local and international investors, with orders amounting to over $17.4 billion and oversubscription in excess of 22 times in aggregate, and 32 times for the Qualified Investor tranche (excluding cornerstone investors).
Fertiglobe’s shares will begin trading at AED 2.55, implying a market capitalisation for the Company of $5.8 billion at the time of listing.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the MENA region by production capacity, and an early mover in clean ammonia. The strong demand for its shares underscores the attractiveness of its business model, growth opportunities from emerging demand for clean ammonia, as well as a robust dividend policy, supported by superior free cash flow conversion capabilities acrosscommodity cycles.
Fertiglobe expects to distribute a dividend of at least $200 million for H2 2021 and at least $400 million for FY 2022.
Ahead of the bell ringing ceremony, His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Fertiglobe Chairman, commented: “The success of Fertiglobe’s IPO, which is the first listing of a free zone company on an onshore stock exchange in the UAE, underscores ADNOC’s prominent role in supporting the growth and diversification of the UAE’s economy and strengthening Abu Dhabi’s increasingly vibrant capital market. With operations across MENA and a global customer base, Fertiglobe’s listing is expected to elevate Abu Dhabi and the UAE’s status as a key destination for foreign direct investment, in line with the UAE’s ‘Principles of the 50’.
This is another milestone in ADNOC’s value creation and maximization strategy, offering domestic and international investors access to growth opportunities in clean ammonia and the emerging hydrogen economy.”
His Excellency Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX, commented: “We congratulate Fertiglobe on the success of their IPO on the Abu Dhabi Securities Exchange. The strong demand for the IPO is a clear indicator of Fertiglobe’s position as a market leader in a fast-growing industry.
This is an exciting moment for the nation as Fertiglobe becomes the first free zone company to be traded on an onshore stock exchange in the UAE and the third largest ever listing on the ADX. The listing provides a unique opportunity for investors looking to access the growth driven by the emerging global demand for clean ammonia.”
Mr. Nassef Sawiris, Executive Chairman of OCI NV and Vice Chairman of Fertiglobe, added: “The success of our initial public offering and the strong demand for Fertiglobe’s shares is another historic milestone for Abu Dhabi and is a great testimony to the success of the ADX as a pre-eminent financial hub in the region. We are excited that so many new investors choose to join our journey.
We welcome our new shareholders and thank them for their trust in our company and growth strategy. The IPO also reflects the strength of OCI and ADNOC’s strategic partnership and we are proud that Fertiglobe can ring in a new chapter for the UAE’s economy and stock market and bolster their visibility in the global markets.”
Mr. Ahmed El Hoshy, OCI NV CEO and Fertiglobe CEO, commented: “I am pleased that we have achieved this milestone with strong ADGM support given the first-of-its-kind onshore listing for a free zone company and thank all our Fertiglobe employees who made this day possible.
Fertiglobe has a track record of delivering solid performance, benefiting from a unique combination of factors including our strategic locations and competitive low cost position, which support strong free cash flows and attractive dividends. We are excited by emerging opportunities in clean ammonia in the growing hydrogen economy, for which we are ideally positioned. Together with a world-class Fertiglobe team and benefiting from strong support from our sponsors, we can look forward to a bright future.”