Fertiglobe sets price range for IPO, implies market cap of up to $5-$6 bln

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DUBAI, Oct 13 (Reuters) – Fertiglobe, a joint venture between Abu Dhabi National Oil Co andchemical producer OCI (OCI.AS), 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 fertilisers 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% 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% plus one share and ADNOC 36.2% 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.

Fertiglobe 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 (FAB.AD), 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.

($1 = 3.6728 UAE dirham)

(This story corrects typo in company name in sixth paragraph)

additional reporting by Saeed Azhar; Editing by Kim Coghill

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