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27/02/2018 - 13:21hs

UAE aluminum company to hold IPO

Emirates Global Aluminium plans to hold an initial public offering in 2018, according to an executive of the company. It exports to over 60 countries, including to the Americas.

São Paulo – Emirates Global Aluminium (EGA), an UAE aluminum company, will go public in 2018, according to information by Abdulla Jassem bin Kalban, an executive of the company, published by the local website Gulf Business.

Emirates Global Aluminium

EGA explores bauxite in the Republic of Guinea

The Arab company is preparing an initial public offering (IPO) – which means that for the first time it will sell stocks in a stock exchange – and the expectation is for the company to offer between 10% to 15% of its shares to the market.

The company was founded in 2013 when the state-owned Dubai Aluminium, from Dubai, and Emirates Aluminium, from Abu Dhabi, merged. The company’s enterprise value was set at USD 15 billion at the time.

Last year, there were rumors about the company’s IPO and international news outlets reported that financial institutions Bank of America Merrill Lynch, Goldman Sachs and JP Morgan would advise on the IPO operation.

Mubadala is an investment company with assets of USD 127 billion at the end of last year’s June and is currently EGA’s main investor. In addition to EGA, Mubadala is also planning to list two other companies.

According to information released by EGA, it is one of the world’s largest producer of premium aluminum and the largest company of the United Arab Emirates outside the oil and gas sector.

This Tuesday (27), the company released its financial results of last year. It registered an increase of 59% of its net profit with AED 3.3 billion (USD 900 million). Revenues reached AED 20.5 billion (USD 5.6 billion), up 20% over 2016.

EGA also reported a record output of 2.6 million tons of aluminum, surpassing the 2.5 million of the previous year. According to the report, the company sold value-added products to 336 clients in 54 countries. It specializes in premium aluminum and it’s investing in exports.

According to EGA, its aluminum is the second most exported product of the UAE, trailing hydrocarbons, and it’s sold to over 350 clients in over 60 countries in Asia, Middle East, North Africa, Europe and the Americas.

In the 2017 results report, the executives didn’t mention the IPO. On the future, Kalban only stated: “Once complete, Al Taweelah alumina refinery in Abu Dhabi and the Guinea Alumina Corporation (GAC), our bauxite mining project in the Republic of Guinea, will deliver value for decades to come as well as create further long-term growth opportunities for EGA.”

*Translated by Sérgio Kakitani

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