Wednesday, 5 May 2021

OCI confirms potential #AbuDhabi listing for fertilizer JV with ADNOC | ZAWYA MENA Edition

OCI confirms potential Abu Dhabi listing for fertilizer JV with ADNOC | ZAWYA MENA Edition

Fertiglobe, a fertilizer joint venture between chemical producer OCI and Abu Dhabi National Oil Company (ADNOC), has started preparing for a potential initial public offering in Abu Dhabi, OCI said in a stock exchange disclosure on Wednesday.

Fertiglobe, 58% owned by OCI and 42% by ADNOC, could be valued between $5 and $5.5 billion, two sources familiar with the deal said.

Reuters sources said last month that ADNOC and OCI were likely to pick First Abu Dhabi Bank, HSBC and Citigroup to work on the public-share sale of their fertiliser joint venture.

Headquartered in Abu Dhabi, Fertiglobe was formed in 2019 after OCI and ADNOC combined their ammonia and urea assets.

Egyptian billionaire Nassef Sawiris, who controls Euronext-listed OCI, is also chief executive of Fertiglobe. Sultan Ahmed Al Jaber, who is chief executive at ADNOC, is chairman of the board at Fertiglobe.

OCI said in its filing Fertiglobe's adjusted EBITDA increased 105% in the first quarter from a year earlier and by 56% compared to the fourth quarter, as its competitive position improved significantly with European gas prices normalising at higher levels. "We continue to benefit from our fixed gas price agreements at Fertiglobe, in light of higher spot gas pricing in other regions and its correlation with product pricing," OCI said.

ADNOC also confirmed it is exploring a potential listing of Fertiglobe. "As ADNOC continues to deliver on its 2030 growth strategy, we will continue to evaluate investment and partnership opportunities that create value and drive sustainable growth for Abu Dhabi and the UAE," the spokesman said in an email.

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