Abu Dhabi - Mubasher: Abu Dhabi-based Fertiglobe has set the offer price range for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) between AED 2.45 to AED 2.65 per share.

The offer price range for the IPO of Fertiglobe, a 58:42 partnership between OCI and ADNOC, implies an equity value of $5.5 billion to $6 billion, according to a press release on Wednesday.

ADNOC and chemical producer OCI have intended to offer 13.8% of shares in their joint venture, expected to be listed for trading on the ADX on 27 October 2021.

The subscription period for the IPO has opened on Wednesday and will continue until 18 October for the first tranche, offered to individual and other investors in the UAE, and 19 October for the second tranche, offered to qualified institutional and other investors.

Inclusive Capital Partners, Abu Dhabi Pension Fund, and Singapore’s GIC Private Limited will invest in the IPO with a combined investment of $231 million.

If all the offered shares are sold, the company is expected to raise around $765 million to $827 million.

In addition, Fertiglobe has raised its cash dividend distribution to $200 million from $150 million for the second half (H2) of 2021, payable in April 2022, and to $400 million from $315 million for the fiscal year 2022.

The UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Fertiglobe Chairman, Sultan Ahmed Al Jaber, said: "Fertiglobe is ideally positioned to play a leading role in a critical global industry, while accessing new opportunities in the rapidly emerging hydrogen economy."

Meanwhile, the Executive Chairman of OCI NV and Vice Chairman of Fertiglobe, Nassef Sawiris, commented: "Our complementary partnership with ADNOC has grown from strength to strength, and Fertiglobe’s listing on the ADX, a preeminent financial hub in the region, will bolster visibility in the global markets."