UAE’s Emirates Global Aluminium cites ‘unfavourable’ conditions for IPO delay

UAE-based Emirates Global Aluminium has delayed its initial public offering (IPO), expected to take place this year, the company confirmed on Sunday.

A spokesperson blamed the delay on “unfavourable market conditions”.

“It remains our intention to launch an IPO of Emirates Global Aluminium, but as we have always said this is subject to market conditions,” the company said in an e-mailed statement.

“Market conditions are not currently favourable, and may not improve until later in 2019. However EGA has completed its preparations and is ready to proceed as soon as market conditions are suitable.”

However, a report by Bloomberg cited an unnamed source as stating that the decision to delay the IPO was prompted by US tariffs on aluminum imports, imposed recently by President Donald Trump.

Trump imposed a 10 per cent levy on aluminum imports.

Read: UAE’s Emirates Global Aluminium “well prepared” following Trump threat

EGA, owned equally by Abu Dhabi sovereign fund Mubadala and the Investment Corporation of Dubai, is the world’s third-largest producer of primary aluminum outside China and produces about 2.6 million tonnes (4 per cent) of aluminum globally.

It exports about 90 per cent of its output

The company first announced plans to list last year and in May, Mubadala Investment CEO Khaldoon Al Mubarak said that EGA could go public in the second half of the year or early 2019.

Also read: UAE’s Emirates Global Aluminium likely to delay IPO

UAE’s Emirates Global Aluminium says IPO on track for second half