UAE's Emirates Global Aluminium considering IPO for H1 2022 -sources

(Corrects last para to add reference on Trump removing tariffs)

DUBAI (Reuters) -Emirates Global Aluminium (EGA) is weighing a potential initial public offering next year, sources said, in what could be one of the biggest share sales in the United Arab Emirates in recent years.

EGA, one of the world’s largest aluminium producers, is examining proposals from banks which pitched for advisory roles, said three sources familiar with the matter, who declined to be named as the matter is not public.

EGA declined to comment when contacted by Reuters on Thursday.

The company is considering offering 10% to 20% of its shares to equity investors in a share sale, and first look estimates from banks value the company from $16 billion to $19 billion.

One of the sources said the company expects banks to take a fresh look at its valuation, and test investor appetite on the deal and other factors.

Aluminium prices in Europe and the United States have hit a record this month and could influence the decision and appetite for the IPO, they said.

Rothschild & Co, the bank controlled by the Rothschild family, is acting as financial advisor on the transaction, they said. Rothschild & Co did not respond to a request for comment.

A decision from EGA on bank mandates is yet to be communicated, but the sources expected the deal would include several international investment banks alongside local lenders First Abu Dhabi Bank and Emirates NBD.

First Abu Dhabi Bank did not respond to a request for comment. Emirates NBD declined to comment.

EGA, which is jointly owned by Abu Dhabi state investor Mubadala and Investment Corp of Dubai, was formed in 2013 when state-owned companies Dubai Aluminium and Abu Dhabi’s Emirates Aluminium merged. Mubadala declined to comment. ICD did not respond to a request for comment.

The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. It reported 4.1 billion dirhams ($1.12 billion) of core earnings for last year, from 2.5 billion dirhams a year prior.

A previous plan to list EGA was delayed in 2018 after U.S. President Donald Trump imposed tariffs on aluminium exports from the Emirates. Trump lifted the tariffs before leaving office but President Joe Biden reimposed them in February.

($1 = 3.6728 UAE dirham)

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