Abu Dhabi's Fertiglobe IPO raises $795mln; valuation seen at $5.8bln

Third largest offering on ADX was 22X oversubscribed

  
Electronic boards displaying stock information are seen as investors look on on the floor of the ADX Abu Dhabi Securities Exchange stock market. Image used for illustrative purpose

Electronic boards displaying stock information are seen as investors look on on the floor of the ADX Abu Dhabi Securities Exchange stock market. Image used for illustrative purpose

REUTERS/Stringer .

The Abu Dhabi-based Fertiglobe raised $795 million in its initial public offering (IPO) on the back of strong investor demand for the third largest offering on the Abu Dhabi Securities Exchange.

At the end of the book-building process, the company set the final offer price at 2.55 dirhams ($0.69), midway in the price range of 2.45-2.65 dirhams indicated last week.

The joint venture between Dutch chemical producer OCI and state energy company ADNOC, has sold 1,145,582,011 ordinary shares equivalent to 13.8 percent of Fertiglobe’s total issued share capital, the company said in a statement on Wednesday.

Based on the final offer price, "Fertiglobe’s market capitalization upon listing is expected to be approximately $5.8 billion (AED 21.2 billion)," it said.

Total gross demand for the IPO amounted to over $17.4 billion, implying an oversubscription level of 22 times in aggregate, and 32 times for the Qualified Investor tranche excluding cornerstone investors, it said.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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