Fertiglobe, the joint venture between Abu Dhabi National Oil Company and Dutch fertiliser company OCI, may raise as much as $827 million in an initial public offering after the company priced its shares on Wednesday.
The company is selling more than 1.145 billion shares representing 13.8 per cent of the company’s share capital. The shares have a price range between Dh2.45 and Dh2.65, implying an equity valuation of $5.5 billion to $6bn. Based on the minimum price range the company would raise at least $765m from the listing.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia and is the region's largest producer of nitrogen fertilisers by production capacity.
The subscription period for the IPO commences today and will close on October 18 for retail in the UAE. The second tranche, which is open to qualified institutional investors, will close on October 19.
"This IPO represents a milestone moment for Adnoc and Fertiglobe, as well as for the growing depth and development of the UAE’s equity capital markets," said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Adnoc managing director and group chief executive, and Fertiglobe chairman.
"Fertiglobe is ideally positioned to play a leading role in a critical global industry while accessing new opportunities in the rapidly emerging hydrogen economy," he said.
The company has also attracted three cornerstone investors with commitments of $231m. They include the Abu Dhabi Pension Fund, Singapore's sovereign wealth fund GIC as well as San Francisco-based activist investor Inclusive Capital Partners.
Fertiglobe also plans to increase its dividend to $200m from $150m, with the pay-out for the second half of the current financial year due in April 2022.
The company expects to distribute a dividend of at least $400m, which is an increase from $315m for the financial year ending December 2022. Fertiglobe will pay half of the dividend amount in October 2022, with the remainder to be paid in April 2023.
It also appointed Jeffrey Ubben, who is the founder and managing partner of Inclusive Capital Partners, to its board as an independent director.
Adnoc holds a 42 per cent stake in Fertiglobe, with OCI retaining the majority 58 per cent interest. OCI is listed on the Euronext Amsterdam exchange and has Egyptian billionaire Nassef Sawiris as its biggest shareholder. Fertiglobe was formed in 2019 following the merger of Adnoc’s fertiliser arm and OCI’s Middle East nitrogen fertiliser business. Fertiglobe's headquarters is at the Abu Dhabi Global Market.
OCI is expected to indirectly continue to own a majority of Fertiglobe’s share capital post-IPO, while Adnoc is expected to indirectly own at least 36.2 per cent of Fertiglobe’s share capital after the offering.
"Our complementary partnership with Adnoc has grown from strength to strength, and Fertiglobe’s listing on the ADX, a pre-eminent financial hub in the region, will bolster visibility in the global markets," Mr Sawiris said.
Fertiglobe’s ADX listing will be the first of a free zone company onshore in the UAE. It strategically positions the company to capitalise on new demand for low-carbon ammonia. The chemical is an integral part of the clean hydrogen economy, in which blue and green ammonia serve as an efficient energy carrier and as a clean fuel. The listing will also allow the company to leverage strengths and global reach from both shareholders.
Citigroup, First Abu Dhabi Bank, HSBC and Morgan Stanley have been appointed as joint global co-ordinators on the IPO. EFG-Hermes, Goldman Sachs and International Securities have been appointed as joint bookrunners. First Abu Dhabi Bank is the lead receiving bank and Al Maryah Community Bank has been appointed as a receiving bank.
The launch of Fertiglobe’s offering follows Adnoc Drilling’s IPO in September, in which the company raised more than $1.1bn from an 11 per cent sale, with the offering more than 31 times oversubscribed.
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Killing of Qassem Suleimani
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
RESULTS
5pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner: Yas Xmnsor, Sean Kirrane (jockey), Khalifa Al Neyadi (trainer)
5.30pm: Falaj Hazza – Handicap (PA) Dh70,000 (D) 1,600m
Winner: Arim W’Rsan, Dane O’Neill, Jaci Wickham
6pm: Al Basrah – Maiden (PA) Dh70,000 (D) 1,800m
Winner: Kalifano De Ghazal, Abdul Aziz Al Balushi, Helal Al Alawi
6.30pm: Oud Al Touba – Handicap (PA) Dh70,000 (D) 1,800m
Winner: Pharitz Oubai, Sean Kirrane, Ibrahim Al Hadhrami
7pm: Sieh bin Amaar – Conditions (PA) Dh80,000 (D) 1,800m
Winner: Oxord, Richard Mullen, Abdalla Al Hammadi
7.30pm: Jebel Hafeet – Conditions (PA) Dh85,000 (D) 2,000m
Winner: AF Ramz, Sean Kirrane, Khalifa Al Neyadi
8pm: Al Saad – Handicap (TB) Dh70,000 (D) 2,000m
Winner: Sea Skimmer, Gabriele Malune, Kareem Ramadan
Specs
Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km
