Novelis postpones its nearly $1 billion U.S. IPO

By P.R. Venkat

Hindalco-backed aluminum recycling company Novelis has postponed its U.S. listing of over $900 million, citing market conditions.

"Novelis will continue to evaluate the timing of the offering in the future," the company said late Tuesday, without elaborating further.

Global markets, especially the U.S., have been volatile in recent sessions amid concerns over economic growth and that the Federal Reserve isn't likely to cut rates anytime soon.

Earnings from major retailers have stoked concerns about U.S. spending habits, suggesting that some Americans are being more selective about where they allocate their money.

Late last month, Novelis launched a roadshow for its offering of 45 million shares that would have listed on the New York Stock Exchange.

The company was offering each share within a price range of $18.00 to $21.00. At the top end of that range, Novelis would have raised $945 million if the public offering had been successful.

Novelis is the world's largest recycler of aluminum with operations throughout North America, Europe, Asia and South America. It is a subsidiary of India's Hindalco Industries (IN:500440), which has interests in an aluminum and copper.

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06-04-24 2316ET

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