EGA Explores IPO Amid Plans For Major Listing

(MENAFN- The Arabian Post)

Emirates Global Aluminium, the largest aluminium producer in the UAE, is moving forward with plans to launch an initial public offering after years of speculation surrounding the potential listing. The company has begun engaging with banks to gather proposals for the offering, which could raise billions of dollars, according to industry sources. Rothschild & Co. has been selected to advise on the deal, although the listing venue remains undecided.

EGA, which was established in 2013 following the merger of Dubai Aluminium and Emirates Aluminium, is jointly owned by Abu Dhabi's Mubadala Investment Company and the Investment Corporation of Dubai. The company operates major aluminium production facilities in both Dubai and Abu Dhabi, which are integral to its standing as a global player in the aluminium market.

The possible IPO comes as part of a wider strategy to unlock value and raise funds for expansion initiatives. With aluminium prices remaining volatile, driven by global demand and supply chain disruptions, EGA's board is said to be considering the timing and structure of the listing carefully. However, the decision to list is seen as an attempt to tap into the growing interest in commodities and energy sectors, which have been attracting significant investments in recent years.

Sources familiar with the discussions confirm that while the IPO is a major step for the company, uncertainties remain regarding the exact venue for the listing. Several stock exchanges have been reportedly considered, including the UAE's own Dubai Financial Market and the Abu Dhabi Securities Exchange. Both have seen increased activity in recent years, with other state-backed companies opting for local listings as part of broader efforts to boost market liquidity and investor participation.

See also Abu Dhabi Leads Global Tax Attractiveness Rankings

While some analysts have speculated that an international listing could also be on the table, especially given EGA's global reach and strategic importance to the UAE's industrial base, the company's leadership is believed to be weighing the pros and cons of keeping the listing domestic versus tapping into the international capital markets.

EGA's move to potentially float on the stock market is part of a broader trend across the Gulf region, where state-backed entities are increasingly turning to public markets to raise capital. In recent years, several notable companies from the region, including Aramco and Dubai Electricity and Water Authority, have successfully launched IPOs, attracting both local and international investors. The success of these IPOs has likely influenced EGA's decision to proceed with its own offering.

However, the aluminium industry's current market conditions present both challenges and opportunities for the company. Aluminium is a key material used in industries ranging from construction to automotive, and with the global push towards green technologies and electric vehicles, demand for aluminium is expected to rise, further strengthening EGA's position. On the other hand, ongoing geopolitical tensions and the fluctuations in energy prices could affect the company's operations and pricing strategies.

The timing of the IPO is crucial, as market conditions could influence investor sentiment. With global stock markets experiencing volatility, particularly in light of economic uncertainties, EGA will need to carefully evaluate whether the current environment is conducive to a successful listing. There is also the question of whether the company will be able to secure the right price for its shares given its large scale and the highly competitive nature of the aluminium market.

See also Gulf Air Expands Fleet with 18 Boeing 787s Powered by GE Engines

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com . We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN08082025000152002308ID1109904453