Fertiglobe joint venture of OCI-ADNOC plans IPO of 13.8% stake

DUBAI, Oct 5 (Reuters) - Abu Dhabi National Oil Company (ADNOC) and chemical producer OCI N.V. plan an initial public offering of 13.8% of the shares in fertiliser joint venture Fertiglobe on the Abu Dhabi Securities Exchange (ADX), the joint venture said on Tuesday.

The deal will be the first onshore listing of a free zone company in the UAE, it added.

Euronext-listed OCI, which is backed by Egyptian billionaire businessman Nassef Sawiris, is expected to retain a majority of the company, while ADNOC is seen indirectly owning 36.2% after the IPO, Fertiglobe said in a statement.

Fertiglobe was founded in 2019 after OCI and ADNOC combined their ammonia and urea assets, with OCI holding 58% and ADNOC the remaining 42%.

In April, sources told Reuters the two companies were weighing an IPO of Fertiglobe, which they said could raise at least $1 billion.

Shares will be offered to retail investors in the United Arab Emirates and qualified institutional investors in other countries as well.

The share price will be decided after a bookbuilding process, and the offering size could be amended at any time before pricing.

The UAE has both onshore and offshore jurisdictions, including the financial centres Abu Dhabi Global Markets and Dubai International Financial Centre, both with legal systems modelled on the English one.

In August, ADNOC said it had agreed, in partnership with Fertiglobe, to sell blue ammonia to Idemitsu in Japan for its refining and petrochemicals operations. (Reporting by Yousef Saba; Editing by Clarence Fernandez)