Determine the price range per share between 2.45 and 2.65 dirhams, which puts the market value of the company between 20.2 and 22 billion dirhams.
Three local and international investment institutions are investing in the offering: the Abu Dhabi Pension Fund, the GIC Singapore Sovereign Wealth Fund, and Inclusive Capital Partners.
Fertiglobe raises its dividend forecast to at least 735 million dirhams for the second half of 2021, and at least 1.468 billion dirhams for the 2022 fiscal year.
– The offering represents a new step in the record of successes and achievements of ADNOC and “Fertigglobe”, and contributes to the growth and development of the financial markets in the UAE in line with the leadership’s vision of sustainable economic growth and the ‘Fifty Principles’ document.
The public offering of Fertiglobe comes after the great success of the initial public offering of ADNOC Drilling, whose shares were listed on the Abu Dhabi Securities Exchange on October 3.
ABU DHABI, 13th October / WAM/ Fertiglobe, the leading fertilizer company affiliated with ADNOC and OCI, today announced the price range for its shares in the initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) and the start of the subscription period for the public offering. The price range per share was set between 2.45 and 2.65 dirhams, which puts the market value of the company between 20.2 and 22 billion dirhams.
Fertiglobe had signed an agreement with three local and international investment institutions to invest in the offering, and raised its dividend forecast for the second half of 2021 and the 2022 fiscal year.
It is expected that the final price of the offering will be announced on Wednesday, October 20, and the shares will begin trading on the Abu Dhabi Securities Exchange on Wednesday, October 27. Today, the subscription period for the initial public offering begins, and continues until Monday, October 18, for individuals and other investors in the UAE, and until Tuesday, October 19, for qualified investors from local and international investment institutions.
Fertiglobe signed an agreement to invest in the offering with the Abu Dhabi Pension Fund, the Singapore sovereign wealth fund GIC, and Inclusive Capital Partners, a San Francisco-based environmental and social governance investment advisory firm. United State. The value of the combined investment of these institutions in the offering amounts to 847 million dirhams (231 million dollars). Fertiglobe also announced the appointment of Jeff Open, founder of Inclusive Capital Partners, as an independent member of the company’s board of directors.
In line with the positive market environment, Fertiglobe has raised dividend expectations from 550 million dirhams to 735 million dirhams at least for the second half of 2021, and from 1.156 billion dirhams to at least 1.468 billion dirhams for the 2022 fiscal year, provided that Dividends are paid in April 2022 for the half of the fiscal year ending on December 31, 2021, and the first and second half of the dividends for the fiscal year ending on December 31, 2022 are paid in October 2022 and April 2023, respectively.
The public offering of Fertiglobe follows the success of the initial public offering of ADNOC Drilling, whose shares were listed on the Abu Dhabi Securities Exchange on October 3, as the offering was covered more than 31 times and demand for shares exceeded 127 billion dollars.
On this occasion, His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, and Chairman of Fertiglobe, said: “The IPO of Fertiglobe has attracted great interest since the intent was announced, and we are pleased to provide it to retail investors. And institutions are a unique opportunity to participate in the company’s growth process, and we are confident that this proposal represents a new step in the record of successes and achievements of “ADNOC” and “Fertigglobe”, as it plays an important role in the growth and development of the financial markets in the UAE in line with the vision of the wise leadership for growth. sustainable economics and the ‘Fifty Principles’ document.
He added, “Fertigglobe has many advantages that enable it to play a pivotal role in the increasingly important field of food security for the world, as well as take advantage of the promising opportunities offered by the emerging hydrogen economy. We are optimistic about the future, especially since ADNOC and OCI” They share a unified vision of achieving sustainable growth, creating and enhancing value, providing continued support to Fertiglobe and a commitment to remain a major shareholder in it for the long term.”
Vertiglobe has enjoyed strong operational and financial performance since its establishment in 2019, and the company expects the public offering on the Abu Dhabi Securities Exchange to consolidate its global position, while seeking to achieve strong performance while maintaining strong cash flows and paying attractive future dividends. .
The potential offering provides the opportunity to invest in Fertiglobe, which is the largest marine exporter of urea and ammonia in the world, in addition to its many advantages that qualify it for long-term growth, and the ability to pay attractive future dividends backed by the company’s strong financial performance, low maintenance costs of its capital assets and its ability to manage cash flows.
The company’s production capacity is supported by a modern asset base, and global warehousing and distribution capabilities thanks to an infrastructure that provides direct access to the six most important export ports on the Red Sea, the Mediterranean Sea, and the Arabian Gulf.
As a leader in the ammonia business and the development of low-carbon ammonia production, Fertiglobe has significant advantages that position it to take advantage of the growing demand for carbon-free ammonia, a hydrogen-carrying product and source of clean fuels in demand in the energy transition.
The public offering provides investors with opportunities to benefit from the company’s future plans to create and enhance value in many areas, including emerging opportunities in the field of carbon-free ammonia, the global demand for which is expected to witness a significant increase, estimated at about 26 million tons by 2030, and about 40 million tons in 2035. Recently, ADNOC and Fertiglobe sold shipments of low-carbon “blue” ammonia to three customers in Japan.
Fertiglobe was established in September 2019 through a strategic partnership between OCI, with a 58% stake, and ADNOC, with a 42% share, and it owns four production facilities in the Middle East and North Africa region, making it the largest ammonia production capacity in the region. .