Mubadala-Backed EGA Taps Banks for IPO at $15 Billion Value
Mubadala Taps Banks for IPO of $15 Billion Aluminum Business EGA
(Bloomberg) -- Emirates Global Aluminium, the Middle East’s biggest producer of the metal, is poised to select three U.S. banks as lead underwriters for its potential initial public offering, people with knowledge of the matter said.
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. to arrange the planned IPO, the people said. A share sale could value EGA at more than $15 billion, according to the people, who asked not to be identified because the information is private.
Emirates NBD Bank PJSC and First Abu Dhabi Bank PJSC are also expected to have roles on the offering, one of the people said. EGA may add more banks to the listing at a later stage, according to the people.
Deliberations are ongoing, and there’s no certainty EGA’s owners will decide to proceed with the listing, the people said. Representatives for Mubadala, EGA and the banks declined to comment.
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 1.74 billion dirhams ($473 million) in the first half, after a loss of $57 million a year earlier. Core earnings were $950 million.
A listing of EGA would rank among the largest-ever share sales in the United Arab Emirates 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.
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-U.S. President Donald Trump imposed tariffs on aluminum imports from the UAE. Bank of America Corp., Goldman Sachs and JPMorgan worked on the plans for the earlier share sale.
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