Fertiglobe shares jump 20% at start of trading on ADX

The company raised more than $795m in the third-largest ever IPO on the bourse

Fertiglobe, the joint venture between Adnoc and Netherlands-listed OCI, jumped as much as 20 per cent on its first day of trading on the Abu Dhabi Securities Exchange on Wednesday.

The company's shares jumped to as high as 3.06 at the start of trading, above their earmarked Dh2.55, giving Fertiglobe a market value of $6.9bn.

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, raised $795 million in its initial public offering and is the third-largest listing on the ADX.

The share offering received orders in excess of $17.4 billion and was 22 times oversubscribed. The IPO's qualified investor tranche, excluding cornerstone investors, was 32 times oversubscribed.

"This is another milestone in Adnoc's value creation and maximisation strategy, offering domestic and international investors access to growth opportunities in clean ammonia and the emerging hydrogen economy," said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.

The company – which is also the Mena region’s largest producer of nitrogen fertilisers by production capacity – sold more than 1.145 billion shares representing 13.8 per cent of its share capital.

Fertiglobe attracted three cornerstone investors with commitments of $231m. They include the Abu Dhabi Pension Fund, Singapore's sovereign wealth fund GIC and San Francisco-based activist investor Inclusive Capital Partners.

OCI will continue to have the majority stake in Fertiglobe, with Adnoc holding on to 36.2 per cent of the share capital.

Fertiglobe plans to increase its dividend to $200m, from $150m, with the payout for the second half of the current financial year due in April 2022.

The company expects to distribute a dividend of at least $400m, up from $315m in the financial year ending December 2022. Fertiglobe will pay half of the dividend amount in October 2022, with the remainder scheduled to be paid in April 2023.

Fertiglobe's trading ticker is “Fertiglobe” and the International Securities Identification Numbering (Isin) code is “AEF000901015”.

Updated: October 27th 2021, 9:57 AM