Abu Dhabi fertilizer firm Fertiglobe raises $800m in IPO backed by Singapore

Abu Dhabi’s state energy company and OCI NV raised $795m by listing their Middle Eastern fertilizer venture, drawing around $17bn of orders and attracting investors including a Singapore sovereign wealth fund and US activist investor Jeff Ubben.

Fertiglobe Holding shares were sold at Dhs2.55 each, the middle of the price range, Abu Dhabi National Oil Co. and Amsterdam-based OCI said last week. The company will be valued at $5.8bn and the stock will start trading in Abu Dhabi on October 27.

Singapore’s GIC Pte and Ubben’s Inclusive Capital Partners had committed $150m between them before the final terms were announced. Just under 14 per cent of Fertiglobe will be listed.

Fertiglobe’s sales have soared over the past year, with the global economic recovery from the coronavirus pandemic triggering a surge in commodity prices. Demand has been further boosted in recent weeks as European fertilizer companies cut production amid an energy crisis.

The company drew enough orders to cover the top end of its initial price range of Dhs2.45 to Dhs2.65 on the first day.

Citigroup, First Abu Dhabi Bank, HSBC Holdings and Morgan Stanley managed the listing.

It is the latest in a string of Middle Eastern deals. Adnoc’s drilling unit surged 30 per cent on its trading debut earlier this month after a $1.1bn IPO, the biggest-ever in the United Arab Emirates’ capital.

In neighbouring Saudi Arabia, ACWA Power International got more than $300bn of orders for its $1.2bn IPO, while the listing of Saudi Telecom’s internet-services unit was also heavily oversubscribed.