Nitrogen and methanol producer OCI NV, Amsterdam, and Abu Dhabi National Oil Co. (ADNOC) are planning to list their Middle Eastern fertilizer venture, Fertiglobe, as soon as October, people with knowledge of the matter told Bloomberg.
Advisers to the company have been holding early meetings with potential investors and aim to announce plans for the initial public offering in the coming weeks, according to sources. Investors could be offered around a 10-15 percent stake in Fertiglobe through the IPO, sources said, asking not to be identified because the information is private.
The IPO could benefit from the rebound in fertilizer prices, which have jumped in the past year as a crop rally helped farmers boost purchases of the nutrient. They have been further supported after Hurricane Ida struck the heart of the U.S. fertilizer industry and Storm Nicholas threatened more damage in the Gulf of Mexico.
At the same time, soaring energy prices in Europe have spread to the fertilizer industry, forcing companies, including Yara International ASA and CF Industries Holdings Inc., to curtail some output. Fertiglobe has locked in gas supplies from producers in markets including Abu Dhabi and Egypt, giving it a potential advantage over some rivals in Europe, people familiar with the matter said.
OCI, which is backed by Egyptian billionaire Nassef Sawiris, has a 58 percent stake in Fertiglobe, while ADNOC holds 42 percent.
Deliberations are ongoing, and details of the potential share sale could still change, sources said. Representatives for ADNOC and OCI declined to comment.