The UAE based sovereign wealth fund Mubadala Investment Company is aiming at a value excess of $20 billion comprising debt for Emirates Global Aluminium PJSC as it moves closer to listing the business, according to an industry expert.
The industry expert also added that Mubadala Investment has urged banks to onset pitching for roles on an initial public offering of EGA.
Khaldoon Khalifa Al Mubarak, CEO and Managing Director of Mubadala Investment stated in April that the company was very near to going public, having seen a previous plan to do so postpone in 2018 after then-U.S. President Donald Trump imposed tariffs on aluminium imports from the United Arab Emirates.
As per our information, Goldman Sachs, Bank of America Corp. and JPMorgan Chase & Co. worked on the plans for the earlier share sale. However, it is fuzzy whether they’ll be preferred again, as Mubadala Investment has reached out to several banks to ask for pitches.
EGA is the Middle East’s biggest aluminium producer and is jointly owned by Mubadala and Investment Corp. of Dubai, while it has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. The aluminium company generated revenue of $5.1 billion in 2020 and made an EBITDA of $1.1 billion.
According to the industry expert, the thought process is advancing and any conclusive decisions on the size and timing of EGA’s IPO will rely on investor demand and market conditions.
EGA listing could position among record-breaking share sales in the UAE and land at a time when the state-owned entities are looking out to monetize their core assets.
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