GIC-backed fertiliser firm Fertiglobe raises US$795m in IPO

[DUBAI] Abu Dhabi's state energy company and OCI raised US$795 million by listing their Middle Eastern fertiliser venture, drawing around US$17 billion of orders and attracting investors including a Singapore sovereign wealth fund and US activist investor Jeff Ubben.

Fertiglobe Holding shares were sold at 2.55 dirhams (S$0.93) each, the middle of the price range, Abu Dhabi National Oil Co (Adnoc) and Amsterdam-based OCI said on Wednesday. The company will be valued at US$5.8 billion and the stock will start trading in Abu Dhabi on Oct 27.

Singapore's GIC and Ubben's Inclusive Capital Partners had committed US$150 million 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 fertiliser companies cut production amid an energy crisis.

The company drew enough orders to cover the top end of its initial price range of 2.45 dirhams to 2.65 dirhams on the first day.

Citigroup, First Abu Dhabi Bank PJSC, 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 US$1.1 billion IPO, the biggest-ever in the United Arab Emirates' capital.

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

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