The initial public offering (IPO) of ADNOC and OCI’s subsidiary Fertiglobe on the Abu Dhabi Securities Exchange exemplifies ADNOC’s proactive approach.
The following report reviews the investment advantages offered by Fertiglobe in conjunction with its listing on the Abu Dhabi Stock Exchange, which presents an investment opportunity backed by the possibility of long-term dividends in a sector of great importance and growing globally to take advantage of emerging opportunities in the value chain of low carbon ammonia and hydrogen markets.
The public offering of Fertiglobe is the third for ADNOC, after the great success of the initial public offering of ADNOC Distribution and ADNOC Drilling, which contributes to supporting the diversification of sectors in the Abu Dhabi Stock Exchange and enhancing its attractiveness and ability to provide more options and investment opportunities.
The new offering also represents a pioneering step in ADNOC’s record of successes and achievements and its quest to build the most active and best economy globally, support and encourage the private sector, in addition to developing the capital markets in the UAE in line with the vision and directives of the wise leadership for sustainable economic growth and the “Fifty Principles” to launch a new era of growth in UAE.
Last week, the process of the initial public offering (IPO) of a minority stake in Fertiglobe began, as the door was opened for UAE citizens, residents and local and international investment institutions to subscribe to 13.8% of Fertiglobe shares in one of the most important companies in the field of nitrogen fertilizers and ammonia in the world, with a price range of Between 2.45 and 2.65 dirhams, which puts the market value of the company between 20.2 and 22 billion dirhams.
The offering is in line with ADNOC’s proactive approach, which it announced in 2017, to manage its asset and capital portfolio and expand its program of strategic partnerships and joint investments with the aim of enhancing value from its business in various fields and stages of the oil and gas sector and achieving additional value for the UAE.
ADNOC’s smart deals and investments are a major driver of economic growth and diversification in the UAE, building the best and most active economy in the world, and consolidating the UAE’s position as a preferred destination for attracting foreign direct investment in the region.
Through this innovative investment approach, ADNOC seeks to provide capital for new projects that support its smart growth strategy and growth projects and initiatives for its main oil, gas and petrochemical businesses.
The company was able to sign investment deals, some of which were among the largest investment deals in energy infrastructure assets that have been completed in the world, some of which we review below.
ADNOC succeeded in offering a pool of redeemable shares and bonds for “ADNOC Distribution”, while ADNOC successfully executed a private placement of a share of “ADNOC Distribution” shares in the largest private placement transaction of its kind in the region for a publicly listed company.
ADNOC Real Estate Portfolio
ADNOC also signed a partnership agreement with the Abu Dhabi Pension Fund to invest in its real estate portfolio through real estate assets not related to its core business to reinvest them in strategic growth projects and initiatives in its main oil and gas businesses.
A global consortium of companies, government agencies and sovereign funds invested to acquire a 49% stake in the group of gas pipeline assets owned by ADNOC.
Subsequently, ADNOC signed a deal with the Abu Dhabi Pension Fund and the Holding Company to join the gas pipeline infrastructure deal.
ADNOC attracted billions of dollars in foreign direct investment, as it concluded a long-term partnership agreement with a consortium of a number of investment institutions led by Apollo Global Management, one of the largest alternative investment management companies in the world, to invest in ADNOC’s real estate assets.
“global financial markets”
ADNOC entered the global financial markets for the first time by issuing bonds backed by the assets of the “Abu Dhabi Crude Oil Pipeline (ADCOP”) and concluded many strategic business partnerships through its companies in the fields of drilling, refining, fertilizers, trading in commodities, products, derivatives, and others.
Fertiglobe, which was established in 2019 as a joint venture between OCI and ADNOC, is the largest exporter of seaborne ammonia and urea in the world and the largest producer of nitrogen fertilizers in the Middle East and North Africa region.
Fertiglobe’s production facilities in the UAE, Egypt and Algeria have a total production capacity of 5.1 million metric tons per year of urea and a net production of 4.4 million metric tons of ammonia, as its nitrogen fertilizer products are essential to meet the requirements of global food production with the increasing growth of the world’s population.
Abu Dhabi-based Fertiglobe operates a modern asset base and nearly half of its plants are less than 10 years old, while the company enjoys strategically located production facilities. .