Novelis Inc, the US-based fully owned subsidiary of Hindalco Industries Ltd., has filed to offer 45 million (4.5 crore) shares for an initial public offering (IPO) with the Securities and Exchange Commission (SEC).The IPO price band is estimated to be between $18 and $21, Novelis said in a filing with the US SEC.Hindalco is aiming to raise $810-945 million funds through this offering.At the higher end of the price band, Novelis is targeting a valuation of up to $12.6 billion in its US IPO.Assuming the green shoe option is exercised, whereby it could offer another 6.75 million shares or a 1.1% stake in case of overallotment, the total proceeds for the sole shareholder of Novelis are estimated to be in the range of $931.5 million to $1.08 billion.Billionaire Kumar Mangalam Birla's Hindalco Industries will own about 92.5% of the company after the IPO.Novelis has applied to list its common shares on the New York Stock Exchange, or NYSE, under the symbol 'NVL'.The shares will be offered by Novelis' sole shareholder, AV Minerals (Netherlands), a 100% subsidiary of Hindalco Industries.
Novelis would not receive any proceeds from the sale of shares by its sole shareholder.Following the offering, Hindalco will own approximately 92.5% of Novelis' outstanding share capital.
Hindalco will therefore control approximately 92.5% of the voting power of the company's outstanding share capital, as per the document filed with the US SEC.
"We are a 'foreign private issuer' under applicable Securities and Exchange Commission rules, and as a result, will be subject to reduced public company reporting requirements for this prospectus and future filings with the Securities and Exchange Commission," it said.The basis net debt of $4.35 billion, as per the F1 document, the enterprise valuation of the company is estimated to be in the range of $15.2 billion to $17 billion.Morgan Stanley, BofA Securities and Citigroup are the joint book-running managers for the proposed IPO, with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers.
BNP Praibas, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko will be co-managers for the issue.Hindalco acquired Novelis in 2007 and delisted it from the exchanges in the US.Novelis said in February it had filed confidentially for the listing with the SEC.Novelis is the world’s biggest maker of flat-rolled aluminium products, used in an array of goods, from cars to soda cans.
Novelis Inc, the US-based fully owned subsidiary of Hindalco Industries Ltd., has filed to offer 45 million (4.5 crore) shares for an initial public offering (IPO) with the Securities and Exchange Commission (SEC).The IPO price band is estimated to be between $18 and $21, Novelis said in a filing with the US SEC.Hindalco is aiming to raise $810-945 million funds through this offering.At the higher end of the price band, Novelis is targeting a valuation of up to $12.6 billion in its US IPO.Assuming the green shoe option is exercised, whereby it could offer another 6.75 million shares or a 1.1% stake in case of overallotment, the total proceeds for the sole shareholder of Novelis are estimated to be in the range of $931.5 million to $1.08 billion.Billionaire Kumar Mangalam Birla's Hindalco Industries will own about 92.5% of the company after the IPO.Novelis has applied to list its common shares on the New York Stock Exchange, or NYSE, under the symbol 'NVL'.The shares will be offered by Novelis' sole shareholder, AV Minerals (Netherlands), a 100% subsidiary of Hindalco Industries. Novelis would not receive any proceeds from the sale of shares by its sole shareholder.Following the offering, Hindalco will own approximately 92.5% of Novelis' outstanding share capital. Hindalco will therefore control approximately 92.5% of the voting power of the company's outstanding share capital, as per the document filed with the US SEC."We are a 'foreign private issuer' under applicable Securities and Exchange Commission rules, and as a result, will be subject to reduced public company reporting requirements for this prospectus and future filings with the Securities and Exchange Commission," it said.The basis net debt of $4.35 billion, as per the F1 document, the enterprise valuation of the company is estimated to be in the range of $15.2 billion to $17 billion.Morgan Stanley, BofA Securities and Citigroup are the joint book-running managers for the proposed IPO, with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional book-running managers. BNP Praibas, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko will be co-managers for the issue.Hindalco acquired Novelis in 2007 and delisted it from the exchanges in the US.Novelis said in February it had filed confidentially for the listing with the SEC.Novelis is the world’s biggest maker of flat-rolled aluminium products, used in an array of goods, from cars to soda cans.
