Hindalco-backed aluminum recycler Novelis to raise about $877 million in IPO
By Steve Gelsi
With 600 million shares outstanding after its goes public, Novelis will have a market capitalization of about $11.7 billion
Aluminum-recycling company Novelis Inc. said Tuesday it plans to offer 45 million shares at an estimate price range of $18 to $21 a share in its upcoming initial public offering.
At the midpoint of the price range, Atlanta-based Novelis will raise about $877.5 million in the IPO with underwriters Morgan Stanley, BofA Securities and Citigroup.
A unit of Hindalco Industries Ltd. (IN:500440), Novelis plans to trade on the New York Stock Exchange under the symbol NVL.
Hindalco will own about 91.4% of Novelis' total outstanding common shares after it goes public, if the underwriters exercise in full their over-allotment option.
With 600 million shares outstanding after its goes public, Novelis will have a market capitalization of about $11.7 billion, based on the midpoint of its estimated price range.
Novelis reported fiscal 2024 net income of $600 million on sales of $16.2 billion, compared to fiscal 2023 net income of $658 million on revenue of $18.5 billion.
-Steve Gelsi
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05-28-24 0757ET
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