Sources say Emirates Global Aluminum is considering IPO – Aluminum Insider
Sources say Emirates Global Aluminum PJSC (EGA) is considering a possible initial public offering (IPO) in 2022 after the company refinanced a significant portion of its debt this week.
Press Agency Reuters is report a trio of sources claiming to be in the know told them that the UAE aluminum smelter plans to offer between ten and twenty percent of its company to outside investors. Experts estimate the company’s total present value to be between $ 16 billion and $ 19 billion.
A source said Reuters that it anticipates that financial institutions will reassess its total value as well as determine what investor interest may exist in such an offer. If an IPO does take place, sources say international investment banks and domestic financial firms would be involved, including Emirates NBD and First Abu Dhabi Bank.
Neither EGA, Emirates NBD, nor First Abu Dhabi Bank commented on the matter.
EGA previously considered an IPO in 2018, but was thwarted by former US President Donald Trump’s imposition of general tariffs on aluminum imports from a wide range of foreign suppliers, including EGA. Although he revoked the tariffs just before leaving office, current President Joe Biden reinstated them when he took office.
EGA’s possible IPO is part of the country’s larger effort to increase the number of listed companies. Several other UAE entities are at various stages considering conducting similar offers.
Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminum is an aluminum conglomerate created by the merger between Dubai Aluminum (DUBAL) and Emirates Aluminum (EMAL) in 2013. EGA had an estimated enterprise value of $ 15 billion. US dollars at the time of the merger. took place. The company is equally owned by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminum holds interests in the bauxite / alumina and primary aluminum smelter.