#UAE IPO: #AbuDhabi, #Dubai Tap Banks for Multibillion-Dollar EGA Listing - Bloomberg

UAE IPO: Abu Dhabi, Dubai Tap Banks for Multibillion-Dollar EGA Listing - Bloomberg

Emirates Global Aluminium PJSC has picked banks to arrange a potential initial public offering, according to people familiar with the matter, in what could be one of the largest listings in the Middle East.

The region’s biggest aluminum producer is in talks with Citigroup Inc., Goldman Sachs Group Inc., Emirates NBD Capital and First Abu Dhabi Bank PJSC to lead the deal, the people said, asking not to be named as the information is private. Rothschild & Co. is advising the firm, Bloomberg News reported last month.

The IPO could value the firm, co-owned by Abu Dhabi’s Mubadala Investment Co. and the Investment Corporation of Dubai, at about $10 billion to $15 billion, some of the people said.

EGA operates plants in both emirates. The choice of the listing venue will be a key question as Abu Dhabi and Dubai compete to attract offerings while seeking to deepen local markets.

Representatives for EGA, Citi, Goldman, Emirates NBD, FAB and Mubadala declined to comment. The Dubai Media Office did not respond to a request for comment on ICD’s plans.

EGA has weighed an IPO for nearly a decade, and there’s no certainty the latest round of deliberations will lead to a deal.

Any offering would come as the company navigates challenges including US tariffs on aluminum. EGA completed its first US acquisition last year to secure tariff-free supply and is planning a $4 billion plant in Oklahoma. In Africa, operations have faced setbacks after Guinea transferred a bauxite mining lease from an EGA unit to a state-owned firm.

The Middle East has become a hotspot for listings, with major deals including Saudi Aramco’s $29.4 billion IPO in 2019 and Dubai Electricity and Water Authority PJSC’s $6.1 billion offering in 2022. Last year, Talabat Holding Plc and OQ Exploration and Production SAOG raised about $2 billion each from share sales.

Mideast Stocks: #Dubai and #AbuDhabi shares climb on rate cut

Mideast Stocks: Dubai and Abu Dhabi shares climb on rate cut

Stock markets in the United Arab Emirates closed higher on Friday after UAE central bank lowered interest rates by a quarter percentage point, in line with the U.S. Federal Reserve.

The move sparked optimism for stronger economic growth and boosted investor confidence.

The Fed cut its policy rate by 25 basis points on Wednesday and indicated that more cuts would follow as it responded to signs of weakness in the job market.

The Fed's stance holds implications for Gulf economies including UAE, where most currencies are pegged to the U.S. dollar.

Dubai's main index jumped 0.7%, boosted by gains in heavyweight real state and industrial sector index with Emaar Development rising 4.9%, while Gulf Navigation Holding climbed 6.8%.

Dubai developer Emaar Properties jumped 1.1%, mirroring the previous session's gains after the firm scrapped plans to sell any stake in its Indian subsidiary and said it is exploring potential joint ventures with major Indian companies, including the Adani Group.

Abu Dhbai's benchmark index settled 0.3% higher, led by a 1.5% hike in Adnoc Gas and 3% jump in Emirates Telecommunications Group. Abu Dhabi's market still has room to perform, particularly following this week's interest rate cut, according to Milad Azar, market analyst at XTB MENA. However, ongoing uncertainty around oil prices at current levels remains a potential risk to the market's upward momentum.

Separately, the UAE economy is projected to grow 4.9% in 2025, up from a prior forecast of 4.4%, on higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.

Abu Dhabi index recorded a 1.1% gain on a weekly basis, while Dubai logged a 0.1% dip - LSEG data Oil prices - a key catalyst for Gulf's financial market - was slightly down as demand concerns overshadowed US rate cut buoyancy.

Brent crude was down 0.1% to $67.47 a barrel by 1142 GMT.