March 21, 2017 / 10:30 AM / 5 months ago

Emirates Global Aluminium plans IPO, banks pitch for role: sources

DUBAI (Reuters) - Emirates Global Aluminium (EGA), one of the world's top five producers, has invited banks to pitch for a role in its planned initial public offering, sources told Reuters.

The IPO could take place later this year, on either the Dubai or Abu Dhabi stock exchange, but the size of the offering has yet to be determined, the sources said.

EGA was created in 2013 when state-owned companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium (Emal) merged. Its enterprise value was put at $15 billion at the time of the merger.

It is owned by Abu Dhabi state fund Mubadala Investment Co and Investment Corporation of Dubai (ICD). Mubadala, which recently merged with International Petroleum Investment Co, has been reviewing its investments in the wake of low oil prices and could see more changes in its strategy, banking sources said.

A request for proposals on the IPO was sent to banks, and submissions were due last week, according to three sources familiar with the matter, who spoke on condition of anonymity as the information is not yet public.

Emirates NBD ENBD.DU, National Bank of Abu Dhabi NBAD.AD, and a U.S. bank have pitched for the role, according to a banking source.

EGA is working with banks to determine the valuation of the company and the size of the IPO, with a listing in the United Arab Emirates, either the Dubai Financial Market or the Abu Dhabi Securities Exchange, two other sources said.

Mubadala's team is working on the offering, one of the two sources said.

EGA, Mubadala, Emirates NBD and National Bank of Abu Dhabi declined to comment. ICD was not immediately available to comment.

EGA, which supplies aluminum to 300 customers in more than 60 countries, reported last month a 10 percent rise in 2016 net profit to 2.1 billion dirhams ($572 million) despite a fall in revenue.

Additional reporting by Tom Arnold; Editing by Susan Fenton

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