Sources claiming knowledge of the situation say Emirates Global Aluminium PJSC (EGA) is on the verge of selecting the three banks it intends to use to launch its initial public offering (IPO) later this year.
Unnamed sources told Bloomberg last week that EGA’s owner Mubadala Investment Co. will name Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co. to assist them in their upcoming IPO. Estimates say that the IPO could total up to US$15 billion.
Other banks could be named at a later date, per the sources. Other banks that may be involved in the IPO are Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC, they say. The sources warned that the IPO isn’t yet a done deal, as EGA brass have yet to make a final decision on the matter.
The parties named by the anonymous sources remained mum on the issue when asked.
EGA queued up an IPO in 2018, but the plan was ultimately nixed due to United States President Donald Trump’s blanket tariff on imported aluminium.
Should EGA’s IPO go forward, it would be one of the biggest offerings in United Arab Emirates’ history. EGA’s parent company raised US$731 million in an IPO in July for affiliate Yahsat, coming in as the second biggest IPO in Abu Dhabi’s history.
Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting.