UAE’s Largest Aluminum Manufacturer Might Raise Multibillion-Dollar IPO in the Middle East

UAE-headquartered EGA, which is jointly owned by Abu Dhabi’s Mubadala Investment Co. and the Investment Corporation of Dubai, has been planning for an IPO for nearly 10 years.

Emirates Global Aluminium (EGA) is considering an initial public offering (IPO) that could become the largest share sale in the UAE.

The largest aluminum manufacturer has sent requests to banks as it plans for a potential initial public offering, aiming to raise billions of dollars. Some sources say that they are working under the advice of Rothschild & Co.

UAE-headquartered EGA, which is jointly owned by Abu Dhabi’s Mubadala Investment Co. and the Investment Corporation of Dubai, has been planning for an IPO for nearly 10 years.

Mubadala CEO Khaldoon Al Mubarak stated that EGA might sell shares publicly. That statement came after the company was ready to hire Citigroup Inc., Goldman Sachs Group Inc., and JPMorgan Chase & Co. for a deal that could value the company at $15 billion.

Both Abu Dhabi and Dubai have been pushing state-backed companies to list on their local exchanges to improve capital markets and monetize valuable assets. This has helped the UAE become one of the most active IPO markets globally in recent years.

Sources indicate that discussions are still ongoing, and there is no guarantee that EGA shareholders will proceed with the offering. The company stated that it is exploring the potential requirement to prepare for the IPO if the shareholders decide to proceed.

Representatives from Mubadala and Rothschild declined to comment. The Dubai Media Office did not answer to a request for comment on ICD’s plans.

It is already facing other challenges, including increased tariffs on aluminum imports to the United States. Last year, the company completed its first acquisition in the US, gaining access to limited supplies with exempted tariffs in one of its key markets.

EGA plans further acquisitions in the US following an initial deal last year, as rising tariffs on metal imports in the US drive up market prices.

EGA is also set to start construction of a $4 billion plant in Oklahoma in the coming year, which coincides with President Donald Trump’s visit to the Gulf, where he aimed to attract trillions of dollars of investment from the region.

The UAE-based metals producer finished its first US acquisition last year, when it purchased 80% of Spectro Alloys Corp. in Minnesota. The deal is beneficial for EGA as it gets valuable supplies by avoiding tariffs, according to Chief Executive Officer Abdulnasser Bin Kalban at a conference in Dubai.

He added that Midwest premiums are rising for metal produced in such plants. The company plans to increase its investment in the US and assess two more deals before President Donald Trump announces a 25% tariff on aluminum and steel imports, he stated. The company will also seek opportunities in Europe.

When EGA manufactures in the US, it will reduce the impact of tariffs on the business; however, the aluminum produced in the UAW and sent to us will still incur duties. The United States depends heavily on aluminum imports to satisfy its domestic needs, with a significant portion coming from Canada, the UAE, and Mexico.

The largest aluminum manufacturer in the Middle East will establish a smelter in Dubai with a capacity of 170,000 tons of recycled aluminum per year this December, which is slightly ahead of its schedule.

Recently, the company suffered a setback in Africa when Guinea transferred a bauxite mining lease from its local subsidiary to a new state-owned entity.

The company aims to produce metal in a more environmentally friendly manner by investing in recycling projects and using renewable energy to power its operations.