Sources Say EGA Delayed to 2019 Due to Aluminium Market’s Reaction to Rusal Sanctions
14 May 2018 by Staff
A planned IPO by Emirates Global Aluminium PJSC is unlikely to occur until next year due to the waves of turmoil set off by the United States government’s levying of crippling sanctions upon Russian smelter U.C. Rusal last month. Such was the message delivered by an anonymous source who spoke to Reuters last week.
“The IPO (initial public offering) is delayed to 2019 due to market conditions,” relayed the unnamed source Reuters identified as one of a trio possessing knowledge of the situation.
The sources continued to elaborate by saying that a final decision has yet to be made, however. They said that the location for the listing is still uncertain as well, with Abu Dhabi and Dubai as the frontrunners at the moment. Roughly 10 to 15 percent of the state-owned firm is to be listed, they explained.
The IPO, once completed, would be the second major listing by a company run by the UAE government, behind that of Abu Dhabi National Oil Co. (ADNOC) last year.
For its part, EGA’s official line remains unchanged.
“We maintain what we’ve said earlier that it will be 2018, subject to market conditions and we continue to monitor the markets,” explained an EGA spokesperson on Thursday.
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. The firm produces around 2.6 million metric tons per year of cast aluminium, placing it at the third largest ex-China smelter.