Emirates Global Aluminium to sell shares

london — Emirates Global Aluminium, the largest aluminum producer in the Middle East, is preparing to sell shares amid a comeback in commodities prices, according to people familiar with the matter.

The UAE based company is seeking advisers for a potential initial public offering on the local stock exchange as early as this year, the people said, asking not to be named as the details aren’t public. The UAE agreed to merge its two flagship state aluminum firms in 2013 to create EGA, with an enterprise value of about $15 billion.

A representative for Emirates Global Aluminium, which is jointly owned by Abu Dhabi’s sovereign fund Mubadala Investment Co. and the Investment Corp. of Dubai, declined to comment. No final decisions have been made, and the firm may decide to delay an IPO or not to list, the people said.

IPOs in the region may be headed for a revival as countries, including the UAE, work to make themselves less dependent on oil. Saudi Arabia, the largest Gulf Arab economy, is also taking steps to overhaul its economy, including plans for what could be the largest-ever IPO with the listing of Saudi Arabian Oil Co.

Companies in the region raised just $1.4 billion from listings last year, compared with $2.9 billion in 2015, according to data compiled by Bloomberg.

EGA said profit last year rose about 10 percent to 2.1 billion dirhams ($572 million) on record production.

Output jumped 4.2 per cent to a record 2.5 million metric tons, making the UAE the fourth-biggest aluminum producer, the company said . —