The leader in global aluminium production, as well as one of the largest companies in the UAE, Emirates Global Aluminium (EGA) is considering a prospective IPO in 2022, as reported by industry sources, which could be one of the substantial share sales in the United Arab Emirates lately.
Equally owned by Mubadala Investment Company of Abu Dhabi and Investment Corporation of Dubai, EGA is reviewing proposals from banks that pitched for advisory roles, the sources said.
However, EGA is yet to comment on this matter. The sources further stated that the aluminium company is considering offering between 10% and 20% of its shares to investors, while initial estimates from banks value the company from $16 billion to $19 billion.
One of the sources mentioned, EGA anticipates banks to grasp a fresh look at its valuation, and to test investor willingness on the deal and other factors.
The surge in the price of aluminium in Europe and the USA has recorded the highest this month and could dominate the willingness for the IPO.
The sources conveyed that Rothschild & Co (ROTH.PA) is acting as financial advisor on the transaction; however, Rothschild is yet to comment.
A resolution from EGA on bank mandates is yet to be communicated. Though, it is expected the deal would incorporate several international investment banks apace local lenders First Abu Dhabi Bank and Emirates NBD. Both the banks First Abu Dhabi and Emirates NBD restricted themselves on commenting.
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