Novelis Inc, a leading provider of sustainable aluminum solutions and a world leader in aluminum rolling and recycling, has launched an initial public offering (IPO) of 45,000,000 of its common shares, owned by its sole shareholder (a subsidiary of Hindalco Industries Limited).
Novelis expects the selling stockholder to grant the underwriters an option to purchase up to an additional 6,750,000 shares of common stock to cover over-allotments, if any, for 30 days after the date of the final prospectus. The estimated price per common share in the IPO is between $18.00 and $21.00 per share. Novelis has applied to list its common stock on the New York Stock Exchange under the symbol “NVL.”
Novelis will not receive any proceeds from the sale of common stock by its sole shareholder. After completion of the IPO, a subsidiary of Hindalco will own 555,000,000 shares of Novelis common stock, representing 92.5% of the total outstanding shares of Novelis common stock (or 91.4% if the underwriters exercise in full the over-allotment option).
Morgan Stanley, BofA Securities and Citigroup are acting as lead managers of the proposed offering, with Wells Fargo Securities, Deutsche Bank Securities and BMO Capital Markets acting as additional managers. BNP PARIBAS, Academy Securities, Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko are acting as co-managers of the proposed offering.
