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Abu Dhabi National Oil Company (ADNOC) and Fertiglobe, a fertilizer partner supported by OCI, today announced their intention to float 13.8% of the shares on the Abu Dhabi Stock Exchange (ADX) through an initial public offering (IPO).
The offering is open to UAE citizens and residents, as well as domestic and international institutional investors. The offer is expected to start on October 13, 2021, subject to regulatory approval and other relevant considerations.
Fertiglobe is the world’s largest seaborne exporter of urea and ammonia, the largest nitrogen fertilizer producer in the Middle East and North Africa, and a pioneer in clean ammonia. It benefits from ammonia as a part of the nascent clean hydrogen economy and potential emerging uses in the future, in which clean ammonia can be used as an effective energy carrier or clean fuel.
Fertiglobe was established in September 2019 as a strategic partnership between OCI (58%) and ADNOC (42%), combining four strategically distributed production facilities in the Middle East and North Africa to create a single platform. The platform has the largest net ammonia export production capacity region.
Through this potential issuance, investors will be able to purchase shares of major players in the global nitrogen fertilizer and synthetic ammonia industry, which has attractive growth stories and investment opportunities. Fertiglobe has a strong income profile and strong cross-commodity cycle free cash flow conversion capabilities, which can realize long-term dividend potential. In addition, investors will benefit from its value creation plans, including the low-carbon ammonia value chain and emerging opportunities in the hydrogen economy.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group Chief Executive Officer and Chairman of Fertiglobe, said: “Fertiglobe’s IPO was launched after ADNOC Drilling’s recent successful listing on the Abu Dhabi Stock Exchange. It reflects ADNOC’s key role in promoting the country’s economic growth and diversification, supporting the further development of the UAE’s private sector and equity capital markets, and attracting foreign direct investment into Abu Dhabi and the UAE. It is fully in line with the recently announced UAE’s 1950s in principle.”
He added: “This offering will be the first listing of a free zone company in the UAE, and it will be open to all citizens and residents of the UAE, as well as local and international institutional investors in multiple countries. Fertiglobe provides access to an increasingly important global industry Unique investment opportunities, while also benefiting from the low-carbon ammonia value chain and emerging opportunities in the hydrogen economy.
“Like OCI, ADNOC will continue to be a long-term and loyal major shareholder of Fertiglobe, and will continue to work with the company to develop emerging opportunities, including the development of a new state-of-the-art blue ammonia project at TA’ZIZ in Ruwais, Abu Dhabi. .”
Given its size, Fertiglobe’s products play a vital role in global agricultural processes and supply chains, providing farmers with the basic elements needed to meet growing crop demand, and enabling Abu Dhabi and the UAE to contribute to global food Make a meaningful contribution safely.
Nassef Sawiris, Executive Chairman of OCI NV and Vice Chairman of Fertiglobe, said: “We are pleased to announce that Fertiglobe intends to float on ADX, which marks another milestone in Fertiglobe’s growth journey since its creation in 2019. As a partnership with ADNOC As it grows, Fertiglobe continues to demonstrate the many benefits we envisioned when it was created, and Fertiglobe is increasingly becoming the ideal platform to seize the opportunities offered by the emerging but fast-growing hydrogen economy and generate strong cash flow.
“As a pioneer in pure nitrogen and clean ammonia, it has increased Fertiglobe’s visibility in the market, including its financial performance attributes that support strong dividend capabilities, commercial positioning, and various strategic growth paths. It is important that Fertiglobe continues to leverage ADNOC and The main advantage of OCI is that they share a common vision in value creation and sustainable development.”
Ahmed EL Hoshy, CEO of OCI NV and CEO of Fertiglobe, commented: “This is an exciting opportunity to introduce to the open market key players in the global nitrogen fertilizer and ammonia industry, which has an attractive growth story and Potentially attractive future dividends are supported by strong free cash flow conditions throughout the commodity cycle. We have the ability to take advantage of a wide range of value creation opportunities. IPOs not only provide opportunities to enter increasingly important global sectors to ensure global food security , But also supports the global energy transition.
“Fertiglobe is a pioneer in the production of blue and green ammonia. It produces low- or no-carbon, and has countless uses as hydrogen carriers and clean fuels to promote greenhouse gas reduction in industries that account for 80% of current global emissions. For example, ammonia It is becoming a clean alternative to heavy fuel oil used in the shipping sector that is difficult to decarbonize. Given its position on the global trade route, Fertiglobe’s positioning in this sector is particularly advantageous.”
Fertiglobe’s production facilities in the UAE, Egypt, and Algeria are strategically located at the crossroads of global trade, allowing easy access to major import markets, combined with its customer strategy, and achieving superior unit economics compared to its peers.
The demand for low-carbon ammonia is expected to increase from the current zero to about 26 million tons in 2030, and to 40 million tons in 2035. Earlier this year, ADNOC partnered with Fertiglobe to sell blue ammonia demonstration goods to three customers in Japan.
In June 2021, Fertiglobe joined ADNOC and ADQ in Abu Dhabi as a partner of Ruwais TA’ZIZ in a new world-class 1 million metric ton blue ammonia project-this partnership will strengthen the value of low-carbon ammonia in the UAE Advocate. The partnership will use ADNOC’s experience in carbon capture and storage and Fertiglobe’s ammonia capabilities to focus on the development of the first large-scale blue ammonia project of its kind in the MENA region. It is also exploring the use of abundant solar and wind energy resources in the region to produce green ammonia in Egypt.
In addition to developing low-carbon ammonia capabilities, Fertiglobe is also committed to achieving decarbonization by improving energy efficiency and investing in low-carbon initiatives, in order to make a meaningful contribution to OCI’s established goal of reducing emissions by 20% by 2030.
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