Speaking of ADX IPOs, we have one right around the horizon as ADNOC-backed Fertiglobe is all locked in on a listing price. The UAE-based chemical products-maker announced yesterday that its share price range implies a total valuation of $5.5-6b.
The company is primarily in the chemicals business with a line-up of agricultural and ammonia products. With the Abu Dhabi National Oil Company (ADNOC) and the Netherlands-based chemicals producer, OCI, as Fertiglobe’s largest shareholders, the listing is expected to offload 13.8% of the company. Its listing could see the company raise $765-827m through listing proceeds, while allowing OCI and ADNOC to retain stakes of 50% and 36% respectively. The remaining stake is set to include the likes of hedge-fund manager Jeffrey Ubben, the Abu Dhabi Pension Fund, and Singapore’s sovereign wealth fund (SWF), which have already been locked in as investors in advance.
why it matters
Fertiglobe becomes the second ADNOC-backed company to list on the Abu Dhabi Exchange this year. If its previous $1b listing of ADNOC D rilling is anything to go by, Fertiglobe could be primed for a robust rally come two weeks from now when it finally lists.