Emirates Global Aluminum likely to delay float after market turmoil
Time:Mon, 14 May 2018 06:04:35 +0800
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Three sources familiar with the deal as saying that Emirates Global Aluminium’s stock market listing is likely to slip to 2019 because of turmoil in global aluminium markets after the United States imposed sanctions on Russian aluminium group Rusal. One of the sources said that “The IPO is delayed to 2019 due to market conditions.”
EGA, which produces 2.6 million tonnes of cast metal a year and is the third-largest producer of primary aluminium outside China, announced plans to float last year.
But aluminium prices have been volatile since Washington, in response to what it called “malign activities” by Russia, imposed sanctions on Rusal and shareholder Oleg Deripaska. Benchmark prices on the London Metal Exchange surged to their highest in seven years.
An EGA spokesman said on 10 May that “We maintain what we’ve said earlier that it will be 2018, subject to market conditions and we continue to monitor the markets.”
EGA’s IPO would be the second major listing by a state company in the United Arab Emirates since Abu Dhabi National Oil Co listed shares in its retail petrol station business in 2017.
The sources said no final decision had been taken on whether the listing would take place in Abu Dhabi or Dubai, while a secondary listing in London was still a possibility. About 10 to 15 per cent of the company is likely to be floated, they said.
Sources had previously said that Bank of America Merrill Lynch, Goldman Sachs and JP Morgan had been hired to run the IPO.
