Reem Aluminium plans IPO in 2009

Reem Emirates Aluminium Co, a producer of aluminium panels, said on Wednesday it plans to sell shares to the public next year to help expand its business overseas.

Reem is awaiting a new law in the United Arab Emirates that would allow it to sell less than a 55 per cent stake, General Manager Derek Bruce told reporters.

"We plan to float a certain percentage of the company in 2009," Bruce said. "We are waiting for the new law to come out and then we will decide what percentage to offer."

Reem produces about 60,000 square metres of aluminium panels a month and also makes light emitting diode (LED) panels in the United States. LEDs are commonly used as small indicator lights on electronic devices and increasingly for torches and area lighting.

Bruce said Reem plans to build a solar panel manufacturing plant in the emirate.

"We have plans to go global and having the IPO and cash injection will help our expansion," Bruce said.

PricewaterhouseCoopers is advising Reem on the initial public offering, Bruce said, adding that it had valued the firm at Dh1.2 billion ($326.8 million).

Sales for the first five months of the year have reached Dh800 million with the firm expected to post sales of 1.5 billion by year-end as it taps into Abu Dhabi's construction boom.

Royal Group is a conglomerate of about 40 companies working in sectors ranging from industry to real estate and information technology, according to Reem's website.

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