Abu Dhabi: Emirates Global Aluminium, the Middle East's biggest producer of the metal, is poised to select three US banks as lead underwriters for its potential initial public offering. The company, which is backed by sovereign fund Mubadala Investment Co., is preparing to bring on Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co..
A share sale could value EGA at more than $15 billion. Emirates NBD Bank and First Abu Dhabi Bank are also expected to have roles on the offering. Deliberations are ongoing, and there's no certainty EGA's owners will decide to proceed with the listing, the people said.
A listing of EGA would rank among the largest-ever share sales in the UAE and would come at a time when state-owned entities are seeking to monetize their core assets. Mubadala raised $731 million in a July IPO of satellite operator Yahsat, in what was Abu Dhabi's second-largest listing.
EGA is owned equally by Abu Dhabi fund Mubadala and another sovereign wealth fund, Investment Corp. of Dubai. Mubadala said in April it was close to a listing of the company. The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. With aluminum prices at their highest levels since 2011, EGA generated a record income of Dh1.74 billion in the first-half after a loss of $57 million a year earlier. (Core earnings were $950 million.)
ADNOC (Abu Dhabi National Oil Co.) is considering IPOs of its drilling business and a fertilizer venture called Fertiglobe, which could each raise more than $1 billion, people with knowledge of the matter have said. A previous plan to list EGA in 2018 was shelved after then-US President Donald Trump imposed tariffs on aluminum imports from the UAE.