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

Fertiglobe joint venture of OCI-ADNOC plans IPO of 13.8% stake
The deal will be the first onshore listing of a free zone company in the UAE. (Supplied)
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Updated 05 October 2021

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

Fertiglobe joint venture of OCI-ADNOC plans IPO of 13.8% stake
  • Euronext-listed OCI, which is backed by Egyptian billionaire businessman Nassef Sawiris, is expected to retain a majority of the company

DUBAI: Abu Dhabi National Oil Company (ADNOC) and chemical producer OCI N.V. plan an initial public offering of 13.8 percent of the shares in fertilizer 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 percent 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 percent and ADNOC the remaining 42 percent.
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 centers Abu Dhabi Global Markets and Dubai International Financial Center, 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.


Bahrain aims to reach net zero carbon emissions in 2060

Bahrain aims to reach net zero carbon emissions in 2060
Updated 6 sec ago

Bahrain aims to reach net zero carbon emissions in 2060

Bahrain aims to reach net zero carbon emissions in 2060

MANAMA: Bahrain's Cabinet said the Gulf country aims to reach net zero carbon emissions in 2060, to help tackle climate change and protect the environment, the state news agency reported on Sunday. 

The decision comes on the heels of the launch of the Saudi Green Initiative in Riyadh on Saturday, which aims to reach net zero emissions of greenhouse gases, mostly produced by burning fossil fuels, by 2060.

Saudi Arabia said the transition to net zero carbon emissions “will be delivered in a manner that preserves the Kingdom’s leading role in enhancing the security and stability of global energy markets.”


Shift from landfills aids Saudi push toward circular economy: SIRC

Shift from landfills aids Saudi push toward circular economy: SIRC
Updated 15 min 21 sec ago

Shift from landfills aids Saudi push toward circular economy: SIRC

Shift from landfills aids Saudi push toward circular economy: SIRC
  • The chief executive officer of Saudi Investment Recycling Co., Ziad Al-Shiha, made the statement on the sidelines of the Green Saudi Initiative in Riyadh.
  • "Saudi Arabia will recycle 95 percent of its landfills during 2035, compared to about the current 5 percent — a complete shift that will have positive effects on the environment and the economy," SIRC CEO said.

CAIRO: Saudi Arabia’s goal to move away from landfills is in line with its larger mission to create a circular economy, which could create 77,000 new jobs and contribute SR120 billion ($40 billion) to the economy. 

The chief executive officer of Saudi Investment Recycling Co., Ziad Al-Shiha, made the statement on the sidelines of the Green Saudi Initiative in Riyadh. 

"Saudi Arabia will recycle 95 percent of its landfills during 2035, compared to about the current 5 percent — a complete shift that will have positive effects on the environment and the economy," SIRC CEO said.


Ministry moves to Saudize marketing, support management jobs

Ministry moves to Saudize marketing, support management jobs
Updated 23 min 31 sec ago

Ministry moves to Saudize marketing, support management jobs

Ministry moves to Saudize marketing, support management jobs

RIYADH: Saudi Minister of Human Resources and Social Development on Sunday issued a decision to Saudize marketing and support management jobs.

As per the decision, the localization rate has been fixed at 30 percent for establishments with a workforce of five or more in the marketing profession.

The decision will take effect on April 1, 2022 and it is expected to create more than 12,000 job openings for male and female citizens.

The ministry will also provide incentives to the private sector for implementing the decisions while violating firms will be held accountable.


Oil profits at risk as natural gas prices surge

Oil profits at risk as natural gas prices surge
Getty Images
Updated 24 October 2021

Oil profits at risk as natural gas prices surge

Oil profits at risk as natural gas prices surge
  • The cost of processing more sulfurous crudes has risen by $6

RIYADH: The surging prices of natural gas are threatening to eat up the profit some oil refiners are making on their fuels, forcing them to cut processing rates and even altering normal crude-buying patterns, Bloomberg reported.

Natural gas — specifically methane — is central to making the hydrogen that oil refineries rely on for diesel-producing machines called hydrocrackers and hydrotreaters, which help to eliminate sulfur.

The cost of processing more sulfurous crudes has risen by $6, a ten times increase compared to two years ago, due to surging natural gas prices, according to the International Energy Agency (IEA). 

European refineries make hydrogen by steam reforming of methane, and the price of methane is unbelievable, according to Callum Macpherson, head of commodities at Investec Plc. 

This will make some refinery operations unprofitable, the IEA, an adviser to oil-consuming nations, said. Making hydrogen is a very energy-intensive process.

Knowing exactly how overall margins — or the decisions that refineries take on crude selection — will be affected is not easy, according to IEA. The proportion of refineries that have secured their gas through long-term contracts, avoiding them from being exposed to spot prices, is unknown, IEA explained.

Higher natural gas prices may reduce oil-processing margins by $3 to $5 a barrel, hurting profits just as the market for fuels is showing clear signs of recovery, Bloomberg reported, citing an official at one oil refinery in the Mediterranean.


UAE banks' assets to grow 8% in 2022, says banking official

UAE banks' assets to grow 8% in 2022, says banking official
Getty Images
Updated 24 October 2021

UAE banks' assets to grow 8% in 2022, says banking official

UAE banks' assets to grow 8% in 2022, says banking official
  • The UAE economy will reap benefits from the world fair Expo 2020 for about eight years

RIYADH: Emirati banks' assets are expected to grow 8 percent in 2022, the head of the UAE Banks Federation Abdul Aziz Al Ghurair told Al Arabiya on Sunday.

The UAE's economy will grow next year by 5 percent and the return of tourism activity will support the growth of assets to this level, he said.

The UAE economy will reap benefits from the world fair Expo 2020 for about eight years, he said. "Expo 2020 restored trust in UAE's economy," he said.

Expo 2020 opened its doors in Dubai this month.

The Central Bank of Emirates's support of 250 billion dirhams ($68 billion) had a significant impact in mitigating the impact of the Corona pandemic on the economic sector and individuals, and overcoming that phase, Al Ghurair said.


He added that the UAE economy and banks are currently reaping the fruits of the support of the UAE Central Bank.

Al Ghurair revealed that 95 percent of the UAE banks have refunded the support amounts and have the ability to support the economy and individuals without the need for support from the Central Bank.

The banking sector dealt with doubtful loans during the past two years and in 2021, noting that the levels of allocations for these loans will return to their normal levels next year, between 1.5 and 2 percent.

The demand for the real estate sector has increased significantly now, after the UAE has proven that it can be relied upon in times of crisis, Al Ghurair said, expecting real estate prices in the country to return to acceptable levels.