Novelis Inc., a leading aluminum products manufacturer under the umbrella of Hindalco Industries Ltd., owned by billionaire Kumar Mangalam Birla, is gearing up to launch its much-anticipated US initial public offering (IPO) by early June, sources familiar with the matter revealed. The Atlanta-based company, a subsidiary of India’s Hindalco, is poised to formally kick off the marketing of the IPO within the next two weeks, sources disclosed, speaking on the condition of anonymity due to the confidential nature of the information.
The development comes after Novelis filed publicly with the US Securities and Exchange Commission on Monday, marking a significant step towards its listing aspirations. Bloomberg News previously reported that Hindalco aims to raise approximately $1.2 billion through the IPO and is eyeing a valuation of around $18 billion.
While the specifics of the offering, including the exact timing, remain subject to change, Novelis has refrained from commenting on the matter, as indicated by a representative for the company.
According to the filing, Novelis has enlisted the services of Morgan Stanley, Bank of America Corp., and Citigroup Inc. to facilitate the potential listing on the New York Stock Exchange. Notably, the shares will be offered by a subsidiary of Hindalco, with Novelis itself not set to receive any proceeds from the sale, as outlined in the filing.
Renowned as the world’s largest producer of flat-rolled aluminum products, Novelis caters to a diverse range of industries, supplying materials utilized in everything from automobiles to beverage cans. The company initially disclosed its confidential filing for the IPO with the US Securities and Exchange Commission back in February.
Hindalco’s acquisition of Novelis in 2007, valued at approximately $6 billion, including debt, has since underscored the conglomerate’s strategic expansion into the aluminum sector. Notably, Novelis derives around 42% of its global net sales from North America, according to details outlined in its IPO filing.
As Novelis sets its sights on the public market debut, anticipation mounts regarding the potential impact of this significant move on both the company’s future trajectory and the broader aluminum industry landscape.