It’s official: Fertiglobe, the Abu Dhabi-based exporter of urea and ammonia, is ready to offer 13.8% of the company’s share capital to institutional and private investors. The funds raised from the IPO will boost the company’s profile with the international investment community and help drive new clean energy projects in the UAE.
In June, Fertiglobe joined forces with ADNOC and sovereign wealth fund ADQ to develop a blue ammonia facility in Abu Dhabi. ADNOC currently holds a 42% stake in Fertiglobe, while OCI (Fertiglobe’s parent company) owns the remaining 58%. After the IPO, ADNOC will detain a minority stake of at least 36.2%, while OCI will continue holding a majority.
why it matters
Fertiglobe will be the third share sale of an ADNOC unit this year. Earlier this week, ADNOC Drilling's shares were up 30% after an 11% stake was sold on the ADX. ADNOC has been keen on finding new ways to diversify its non-core assets income and develop its infrastructure. Fertiglobe is just the latest addition to the mix.