Emirates Global Aluminium Considering IPO in 2022
Reuters reported that Emirates Global Aluminium is weighing a potential initial public offering next year. Sources said “EGA is examining proposals from banks which pitched for advisory roles. The company is considering offering between 10% and 20% of its shares to investors and initial estimates from banks value the company from USD 16 billion to USD 19 billion. A decision from EGA on bank mandates is yet to be communicated, but deal would include several international investment banks alongside local lenders First Abu Dhabi Bank and Emirates NBD.”
One of the sources said EGA expects banks to take a fresh look at its valuation, and to test investor appetite on the deal and other factors.
EGA declined to comment when contacted by Reuters
Rothschild & Co is acting as financial advisor on the transaction. Rothschild did not respond to a request for comment.
EGA, which is jointly owned by Abu Dhabi state investor Mubadala and Investment Corp of Dubai, was formed in 2013 through a merger of state-owned Dubai Aluminium and Abu Dhabi's Emirates Aluminium. The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. It reported 4.1 billion dirhams (USD 1.1 billion) of core earnings for last year, up from 2.5 billion dirhams a year prior.