Novelis Inc. (NVL Proposed), the world’s largest recycler of aluminum, disclosed the terms for its $877.5 million IPO early today (Tuesday, May 28, 2024): 45.0 million shares at a price range of $18.00 to $21.00 a share. If priced at the $19.50 mid-point of its range, Novelis’ IPO would raise $877.5 million. All stock in the IPO is being offered by the selling shareholder, the prospectus says. The profitable company, incorporated in Canada, will not receive any proceeds from the sale of the selling shareholders’ stock. This is a New York Stock Exchange listing. The IPO is expected to price next week. (Please see IPOScoop‘s IPO Calendar for the pricing date.)
The IPO’s terms would give Novelis a market cap of about $11.7 billion, assuming mid-point pricing.
Morgan Stanley, BofA Securities, Citigroup, Wells Fargo Securities, Deutsche Bank Capital Markets and BMO Capital Markets are the joint book-runners.
The Canadian company filed its F-1 two weeks ago.
Novelis, whose North American operations are based in Atlanta, describes the company and its business in the prospectus:
“We consider ourselves the leading producer of innovative, sustainable aluminum solutions and the world’s largest recycler of aluminum. Specifically, we believe we are the leading provider of low-carbon aluminum solutions, helping to drive a circular economy by partnering with our suppliers and customers in beverage packaging, automotive, aerospace and specialties (a diverse market including building & construction, signage, foil & packaging, commercial transportation and commercial & consumer products, among others) markets globally. Throughout North America, Europe, Asia, and South America, we have an integrated network of 32 world-class, technologically advanced facilities, including 14 recycling centers, 11 innovation centers, and 13,190 employees.”
For the fiscal year that ended March 31, 2024, Novelis earned net income of $600.0 million on revenue of $16.21 billion, the prospectus says.
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