Emirates Global Aluminum (EGA) Mulls IPO in Foreseeable Future

Emirates Global Aluminum (EGA) is dusting off its initial public offering (IPO). EGA has hired Rothschild & Co. as transaction advisor and the IPO is expected to raised ‘several billions’. Citigroup, Goldman Sachs and JP Morgan Chase are also poised to assist EGA with the IPO. Some analysts believe the listing could bring in over USD 15 billion.0000

It was in 2013 that EGA was formed from the fusion of two state-owned enterprises Dubai Aluninum and Emirates Aluminum. Now, the two shareholders of EGA are Abu Dhabi’s Mubadala Investment and the Investment Corporation of Dubai.

At this point, no definite indication of which exchange the listing take place, but if carried out in Dubai, it will certainly give a boost to the Dubai International Finance Center (IFC). As far back as in 2018, EGA CEO Abdulla Kalban announced that ‘an IPO was in the works.’ In 2023, Mubadala Investment CEO Khaldoon al Mubarak also revealed that the IPO could be happening soon.

Recently, EGA experienced a major setback by having its bauxite mining license in Guinea revoked on grounds that it took too long to implement a refinery as part of its agreement. At the same time, US President Trump announced 50% tariff on aluminum, steel and copper in a bid to bring production back in the USA.

Thus, EGA recently announced plans to invest USD 4 billion to build a aluminum refinery in Oklahama, USA. The aluminum produced is used in cans for drinks, plane body and even electric vehicles. EGA actually roped in BMW as its first customer for low-carbon aluminum with a supply deal worth more than USD 120 million in 2021.

As part of its green aluminum initiative, EGA has been promoting the use of renewable energy to power its smelting operations. Smelting is a pretty energy-intensive process and the move could avoid much greenhouse gases emissions. It plants in Abu Dhabi and Dubai currently use mostly energy produced from hydrocarbons but the plan is to push for #decarbonization.