Fertiglobe IPO price range implies equity value of up to $6bn

Fertiglobe IPO price range implies equity value of up to $6bn
The company makes fertilizers and clean ammonia products. (Supplied)
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Updated 13 October 2021

Fertiglobe IPO price range implies equity value of up to $6bn

Fertiglobe IPO price range implies equity value of up to $6bn
  • ADX is seeing a surge of new listings this year including companies owned by oil giant ADNOC and state investor Mubadala

DUBAI: Fertiglobe, a joint venture between Abu Dhabi National Oil Co. and chemical producer OCI, on Wednesday set the price range for its initial public offering, implying an equity valuation of $5.5 billion to $6 billion for the company.
The company, which makes fertilizers and clean ammonia products, also said in a statement it secured Inclusive Capital Partners, Abu Dhabi Pension Fund and Singapore sovereign wealth fund GIC as cornerstone investors in the offering.
The existing shareholders will sell a 13.8 percent stake in the IPO at an indicative price range of 2.45 dirhams and 2.65 dirhams per share. After the listing, OCI will own 50 percent plus one share and ADNOC 36.2 percent stake.
It said the final offer price is expected to be announced on Oct. 20, and listing of the shares in Abu Dhabi is expected on Oct. 27.
ADX is seeing a surge of new listings this year including companies owned by oil giant ADNOC and state investor Mubadala.
Fertilobe is the second ADNOC-backed company seeking a listing on the Abu Dhabi bourse after ADNOC Drilling raised $1.1 billion in its IPO.
The company said it intends to bring Jeffrey Ubben, activist hedge fund manager, to Fertiglobe board of directors post-listing.
Ubben, who grew ValueAct Capital into one of the world’s most powerful activist hedge funds, also co-founded Inclusive Capital Partners.
Fertiglobe also said it will increase its dividend guidance from at least $150 million to at least $200 million for the second half of 2021, and from at least $315 million to at least $400 million for financial year 2022.
Citigroup, First Abu Dhabi Bank, HSBC Bank Middle East Ltd. and Morgan Stanley & Co. International plc have been appointed as joint global coordinators.
EFG Hermes, Goldman Sachs International and International Securities L.L.C are acting as joint bookrunners.


Oil prices hover around 2014 highs, supported by supply concerns

Oil prices hover around 2014 highs, supported by supply concerns
Updated 15 sec ago

Oil prices hover around 2014 highs, supported by supply concerns

Oil prices hover around 2014 highs, supported by supply concerns

SINGAPORE: Oil steadied on Thursday, clawing back losses earlier in the session, as strong demand and short-term supply disruptions continue to support prices close to their highest levels since late 2014.
Brent crude futures fell 17 cents, or 0.2 percent, to $88.27 a barrel, as of 0418 GMT, having dropped more than $1 earlier in the session. The global benchmark touched $89.17 a barrel on Wednesday, its highest since October 2014.
U.S. West Texas Intermediate crude futures were up 7 cents, or 0.1 percent, to stand at $87.03 a barrel, having also shed nearly $1 earlier. WTI climbed to as much as $87.91 on Wednesday, the highest since October 2014.
"The International Energy Agency said global oil demand is on track to hit pre-pandemic levels," analysts at ANZ bank said in a note.
"Shorter-term supply disruptions are also helping tighten markets. Brent crude rallied sharply after reports a key oil pipeline running from Iraq to Turkey was knocked out by an explosion."
However, the flow of crude oil through the Kirkuk-Ceyhan pipeline has resumed, after it was halted on Tuesday due to a blast near the pipeline in the southeastern Turkish province of Kahramanmaras, officials said on Wednesday.
Supply concerns have mounted this week after Yemen's Houthi group attacked the United Arab Emirates, the third-largest producer in the Organization of the Petroleum Exporting Countries. Meanwhile Russia, the world's second-largest oil producer, has built up a large troop presence near Ukraine's border, stoking fears of invasion and subsequent supply uncertainties.
Underpinning oil prices is the broad post-coronavirus pandemic recovery in demand for fuel.
OPEC officials and analysts say that an oil rally may continue in the next few months, and prices could top $100 a barrel as demand shrugs of the spread of the Omicron COVID-19 variant.
OPEC+, which groups the cartel with Russia and other producers, is struggling to hit a monthly output increase target of 400,000 barrels per day.
U.S. crude and gasoline stocks rose while distillate inventories fell last week, according to market sources citing American Petroleum Institute figures on Wednesday.
Crude stocks rose by 1.4 million barrels for the week ended Jan. 14. Gasoline inventories rose by 3.5 million barrels while distillate stocks fell by 1.2 million barrels, according to the sources, who spoke on condition of anonymity.


UK hosting Africa investment summit for green transition

UK hosting Africa investment summit for green transition
Updated 20 January 2022

UK hosting Africa investment summit for green transition

UK hosting Africa investment summit for green transition
  • The conference aims to unlock millions of pounds of new investment, especially in clean energy industries in the UK and Africa
  • Britain will launch a digital tool to link African and British businesses to the UK government

LONDON: The UK is hosting an investment conference on Thursday to boost sustainable economic cooperation with African countries and to support the continent’s transition to clean growth.
UK Prime Minister Boris Johnson will open the one-day event, which will be attended by UK and African ministers, business leaders and and heads of international organizations.
The conference, in its second edition, aims to unlock millions of pounds of new investment, especially in clean energy industries in the UK and Africa.
“Two years on from the inaugural UK-Africa Investment Summit, the UK’s ambition to be Africa’s investment partner of choice has never been stronger,” said Secretary of State for International Trade Anne-Marie Trevelyan.
“This year’s conference focuses on the importance of resilient, sustainable investment to support Africa as it pivots toward a more environmentally friendly growth trajectory, and I look forward to working with leaders from the continent as they continue on this path to a greener future,” she added.
During the conference, the UK will launch a new Growth Gateway — a digital tool to link African and British businesses to UK government trade, finance, investment services and opportunities.
UK Export Finance — Britain’s export credit agency — has significantly increased support for markets in Africa in the past year from about £600 million ($817 million) in 2018-19 to more than £2.3 billion in 2020-21, supporting a range of infrastructure projects in countries from Cote d’Ivoire to Uganda, the Department for International Trade said.
Minister for Africa Vicky Ford said that the UK is “deepening its economic ties with African nations” and “there is a lot more that can be done,” adding: “Growth Gateway will make it easier than ever for African and British businesses to access the support they need to boost two-way trade and investment.”
This year’s conference also comes after Britain hosted the UN Climate Change Conference, COP26. The country is looking to build on its commitment to providing £11.6 billion of its International Climate Finance program to help developing countries tackle climate change over the next five years.
Last year’s virtual conference was attended by more than 2,800 delegates from over 40 African countries. Across the UK, 27 trade and investment deals worth £6.5 billion were announced, on top of further commitments worth £8.9 billion.


Turkey Dream Games triples in valuation after raising $255m in funding

Turkey Dream Games triples in valuation after raising $255m in funding
Updated 19 January 2022

Turkey Dream Games triples in valuation after raising $255m in funding

Turkey Dream Games triples in valuation after raising $255m in funding
  • Turkish mobile gaming start-up Dream Games raised an unprecedented $255 million in its latest Series C funding round

RIYADH: Turkish mobile gaming start-up Dream Games raised an unprecedented $255 million in its latest Series C funding round, almost tripling its valuation to $2.75 billion in six months, MAGNiTT reported.

This round of funding was led by Index Ventures, subscribed by returning investors such as Makers Fund, IVP, Kora, Balderton Capital and managed by BlackRock.

The company plans to use the funds for doubling its headcount to 200 people and launch a new game this year.

Founded in 2019, Istanbul-based Dream Games is a mobile gaming company that developed Royal Match — one of the highest grossing mobile games.


UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF
Updated 19 January 2022

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF

UAE, Saudi Arabia, Qatar top competitive economies in the Arab World: AMF
  • The United Arab Emirates, Saudi Arabia, and Qatar were ranked the most competitive Arab economies

RIYADH: The United Arab Emirates, Saudi Arabia, and Qatar were ranked the most competitive Arab economies for the period between 2017 until 2020, according to a report launched by the Arab Monetary Fund.

The fifth Arab economies competitiveness report showed that the UAE maintained its top ranking in the general index as it benefited from high scores in the business environment and infrastructure category as well as the organizational and government governance category.

The Kingdom ranked second after having performed well in the overall economic index, the external activities sector and the official reserves index.

Qatar followed in third place, after attaining first place in the real economy sector, the inflation index and GDP per capita index.

Four Arab nations advanced in terms of competitiveness compared to the previous period, including Sudan, Egypt, Morocco, and Mauritania.

Arab states and other non-Arab countries — such as Singapore, Malaysia, Turkey — are included also in the calculation of the index.

The report monitors the economic competitiveness of Arab countries and sheds light on the economic and political measures applied by decision makers for that purpose.


TRSDC closes financing for $3.76bn loan from four Saudi banks

TRSDC closes financing for $3.76bn loan from four Saudi banks
Updated 19 January 2022

TRSDC closes financing for $3.76bn loan from four Saudi banks

TRSDC closes financing for $3.76bn loan from four Saudi banks

RIYADH: Saudi Arabia's The Red Sea Development Co., or TRSDC, announced the financial closure of a SR14.12 billion ($3.76 billion) loan with four Saudi banks.

The financing will be in a form of a term loan facility and a revolving credit facility.

TRSDC, which is developing the world's largest sustainable tourism project, has obtained the loan from Saudi National Bank, Riyad Bank, Banque Saudi Fransi, and Saudi British Bank, according to a statement.

“This year, we have proceeded at pace with the delivery of our flagship project, all the while mindful of our commitment to not only reduce our impact on the environment but actively deliver a 30 percent net conservation benefit by 2040,” explained John Pagano, chief executive officer of The Red Sea Development Company.

GFC Media Group have recently awarded TRSDC’s Green Financing as Project Finance Deal of Year in the Capital Markets Saudi Arabia Awards.