LONDON, March 27 (Reuters) - Emirates Global Aluminium (EGA) mandated Bank of America Merrill Lynch, Goldman Sachs and JP Morgan to advise on its initial public offering, sources familiar with the situation said on Monday.
The three banks, which were mandated as joint global coordinators, declined to comment.
One source said the company had earnings before interest, tax, depreciation and amortization (EBITDA) of at least $1.5 billion and that its closest publicly traded comparison was Norsk Hydro which is trading at a forward looking enterprise value-EBITDA multiple of 6.1, according to Thomson Reuters data.
Last week Reuters reported that the company, one of the world’s biggest producers, had invited banks to pitch but that the size of the offering was yet to be determined.
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).
EGA, which supplies aluminium to 300 customers in more than 60 countries, has reported a 10 percent rise in 2016 net profit to 2.1 billion dirhams ($570 million) despite a fall in revenue. (Editing by Ruth Pitchford)