Emirates Global Aluminium PJSC (EGA), the UAE’s industrial powerhouse, has picked leading banks to arrange a potential initial public offering (IPO) that could rank among the Middle East’s largest listings. The deal could value the company at between USD 10 billion and USD 15 billion, according to people familiar with the matter.
Image: EGA
EGA, co-owned by Mubadala Investment Company and the Investment Corporation of Dubai, is said to be working with Citigroup Inc., Goldman Sachs Group Inc., Emirates NBD Capital and First Abu Dhabi Bank PJSC. Rothschild & Co. is acting as an adviser. However, representatives of the banks and shareholders have declined to comment.
The venue of the listing remains a crucial decision, with Dubai and Abu Dhabi competing to attract marquee offerings as they deepen their domestic capital markets. For EGA, an IPO would mark the culmination of nearly a decade of planning. The company has faced challenges, including US aluminium tariffs, and has sought to mitigate them through strategic measures, such as its first US acquisition last year and plans for a USD 4 billion smelter in Oklahoma.
EGA also encountered setbacks in Guinea, where a bauxite mining lease was reassigned to a state-owned firm. Yet, demand tailwinds remain strong, with aluminium seen as vital for renewable energy, automotive lightweighting and construction.
Also read: EGA is time ahead with 50% completion of its new aluminium recycling plant
EGA’s listing gains momentum amid regional IPO boom
This is not the first time talk of an IPO has surfaced. Back in January 2023, Khaldoon Khalifa Al Mubarak, CEO of Mubadala, told news sources on the sidelines of Davos, “It will happen maybe this year. We’ll see how markets react. If it’s appropriate and makes sense for the shareholders and us, we might go in the third or fourth quarter.”
While that timeline shifted, EGA’s pursuit of a listing aligns with a broader regional IPO boom, highlighted by Saudi Aramco’s USD 29.4 billion record in 2019 and Dubai Electricity and Water Authority’s USD 6.1 billion raise in 2022.
Market analysts say an EGA IPO could reveal how international investors value Middle Eastern aluminium. If successful, EGA’s IPO will not only test global investor appetite for industrial commodities but also position the UAE as a central hub in the aluminium supply chain shaping the energy transition.
Also read: EGA announces plan to expand the supply of CelestiAL solar aluminium to Hyundai Mobis
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