EGA to revive IPO?

Emirates Global Aluminium (EGA) could be reviving plans for a potential initial public offering that could rank among the region’s largest, Bloomberg reports, citing people familiar with the matter. The UAE aluminium producer sent requests for proposals to banks, with Rothschild & Co. advising, the sources said. No clear timeline was given for the potential IPO.

Long time coming: Backed by Mubadala and the Investment Corporation of Dubai, EGA has explored going public multiple times over the past decade, including in 2018 and 2021, but shelved those plans. Mubadala CEO Khaldoon Al Mubarak said in 2023 that a listing could happen “maybe this year,” though no decision was made.

Where things stand: The company is “exploring potential requirements to ensure readiness” with the final call still in shareholders’ hands. The choice of venue — Abu Dhabi or Dubai — will be a key factor as both push state-backed firms to list locally.

SOUND SMART- The ADX has a deeper capital base, with a market cap of more than AED 3 tn, and features heavyweights like Adnoc’s subsidiaries, Abu Dhabi’s IHC, and more, while the DFM is smaller, but boasts a diversified roster of firms in sectors ranging from tech to telecoms and real estate. While most Abu Dhabi-backed firms usually take the ADX route, EGA’s affiliation with Dubai could throw that into question.

No numbers yet: An offering could raise several bn USD, though no size has been confirmed. A previous valuation pegged EGA at over USD 15 bn.

The backdrop: The potential IPO comes as EGA faces operational headwinds, including newly imposed US aluminium tariffs and a recent setback in Guinea, where it lost a key mining concession. At the same time, it’s pushing ahead with its US expansion plans, including a planned USD 4 bn plant in Oklahoma, and is in the running to develop Ghana’s Nyinahin Hills bauxite deposit, after signing an MoU in June with Ghana’s state-owned aluminium development firm.

REMEMBER- The UAE could see between three to five IPOs this year:. The pipeline includes firms like Dubizzle, Five Holdings, Alec Engineering, and IHC’s 2PointZero, while a highly anticipated IPO from Etihad Airways could be delayed to 2026. Dubai Investments also said it could IPO one of its subsidiaries this year. Meanwhile, Abu Dhabi Investment Group (ADIG) is eyeing listings for its financial unit and energy subsidiary