Novelis Inc, the Hindalco Industries arm, on Tuesday filed papers for a $945-million initial public offering that would value the firm at up to $12.6 billion.
In the proposed public issue, around 45 million shares will be sold by Novelis Inc’s sole shareholder AV Minerals (Netherlands) NV, which is a wholly-owned subsidiary of Hindalco.
The company, therefore, will not receive any proceeds from the share float.
“The IPO’s price per common share is currently estimated to be between $18 and $21 per share. Novelis has applied to list its common shares on the New York Stock Exchange under the symbol ‘NVL’,” a statement from the Aditya Birla group said.
The underwriters are likely to be given the option to purchase up to an additional 6.7 million common shares to cover any overallotment for 30 days after the date of the final prospectus.
If this option is exercised, the proceeds will range from $ 931.5 million to $1.08 billion. Similarly, its valuation could be in the range of $ 15.2-17 billion.
Hindalco owns 100 per cent of Novelis through A V Minerals. Post IPO, Hindalco will own 92.5 per cent or 91.4 per cent if the underwriting option is exercised.
Morgan Stanley, BofA Securities and Citigroup are the lead book-running managers.
Earlier this month, Novelis said it was expected to complete the public offering after the SEC completed its review process, subject to market and other conditions.
“There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.”
This will be the second company from the Aditya Birla group to go for an overseas listing after Birla Carbon (Thailand).
Novelis, which is a major player in aluminum rolling and recycling, posted a turnover of $16.2 billion in 2023-24.
