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OCP eyes Nutricrops unit IPO: Moroccan state-owned fertilizer giant OCP is looking to list its recently launched chemicals unit OCP Nutricorps as part of the company’s efforts to finance its decarbonization plans, a company source told Bloomberg. No timeline or financial details have been disclosed for the IPO but the offering could reel in hundreds of mns for OCP, the source added. OCP Group launched OCP Nutricorps earlier this month with a focus on customized phosphate-based and sustainably produced soil and plant nutrition products in a bid to strengthen food security.
Who’s selling and why? OCP — which operates the world’s largest phosphate deposits — is 90% owned by Morocco’s government, which plans to offload stakes in state-owned firms to navigate the economic consequences of the Russia-Ukraine war.
This has been in the works: OCP has been planning to take its Nutricrops division public since its launch in 2022, Bloomberg writes. The potential IPO plans were expedited as the unit recently acquired fertilizer assets worth MAD 30 bn through a carve-out agreement and due to the launch of Morocco’s national green hydrogen roadmap.
We also have a rough estimate on OCP’s bond sale ambitions: OCP is planning to raise USD 5-7 bn through 2027 through bond sales, the source told Bloomberg. The news comes a day after OCP reportedly launched an investor roadshow for an international bond worth up to USD 2 bn. If issued, the bonds will be the company’s first bond sale since its USD 1.5 bn dual-tranche issuance in 2021. JP Morgan, Citi, and BNP Paribas have been appointed to manage the bond issuance.
REMEMBER- The funds are going towards the green transition: The funds raised will support OCP’s development plan, which includes a USD 13 bn strategy to transition entirely to renewable energy for its industrial processes with plans to invest in green hydrogen for ammonia production and desalination projects. OCP plans to power all of its industrial facilities with clean energy by 2027.
