MUMBAI: Billionaire Kumar Mangalam Birla’s American metals firm Novelis has filed for a $945 million initial public offer, valuing the aluminium firm at $12.6 billion and a fixed price band of $18–21 per share.
In an exchange filing on Tuesday, Hindalco, the parent of Novelis, which it had purchased in a multibillion-dollar deal in 2007, said the company will offer 45 million shares in a price band of $18–21 per share, which at the upper end will fetch 3,945 million in proceeds.
Novelis is the world’s biggest maker of flat-rolled aluminium products used in an array of goods, from cars to soda cans, while Parent is the largest in the domestic market and largest in the world in terms of revenue.
The filing and price band fixing follow a May 14 filing by Novelis seeking the registration statement with the US Securities and Exchange Commission. Morgan Stanley, BofA Securities and Citigroup are the lead book-running managers for the proposed issue, with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers. BNP Praibas, Academy Securities, Credit Agricole, PNC Capital Markets and SMBC Nikko are the co-managers. Novelis has applied to list its common shares on the New York Stock Exchange under the ticker NVL. An earlier report said Hindalco was seeking to raise $1.2 billion from the Novelis IPO.
Novelis will not receive any proceeds from the sale of common shares fully owned by Hindalco, which will own about 92.5% stake in the company after post-issue. In a statement issued from Atlanta, Novelis expects the selling shareholder to grant the underwriters an option to purchase up to an additional 6.75 million common shares to cover over-allotments, if any, for 30 days after the date of the final prospectus.