Sources say Emirates Global Aluminium PJSC (EGA) is weighing a possible initial public offering (IPO) in 2022 after the firm refinanced a significant chunk of its debt this week.
Wire service Reuters is reporting that a trio of sources claiming knowledge revealed to them that the UAE’s aluminium smelter is considering offering between ten and twenty percent of its company to external investors. Experts estimate the company’s total current value to be between US$16 billion and US$19 billion.
A source told Reuters that it foresees financial institutions will reevaluate its total value as well as determining what interest may exist on the part of investors for such an offer. If an IPO does in fact occur, the sources indicate that both 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 offered comment on the issue.
EGA previously considered an IPO in 2018 but was stymied by former United States president Donald Trump’s levy of blanket tariffs on imports of aluminium from a wide swath of overseas suppliers including EGA. Though he revoked the tariffs just prior to leaving office, current president Joe Biden reinstated them upon assuming office.
EGA’s possible IPO is part of the country’s wider effort at increasing the number of companies publicly trading shares. Several other UAE entities have plans at various stages to conduct similar offerings.
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.