Novelis Inc., an aluminum products manufacturer owned by Hindalco Industries Ltd., controlled by billionaire Kumar Mangalam Birla, is aiming to finalize its planned initial public offering (IPO) in the United States by early June, as per individuals familiar with the matter.
Sources indicate that the company, a subsidiary of India’s Hindalco, could initiate the formal marketing of the IPO in approximately two weeks, although this information is not public. On Monday, Novelis filed publicly with the US Securities and Exchange Commission for the listing.
Hindalco intends to raise around $1.2 billion through the IPO for Novelis, headquartered in Atlanta, and might target a valuation of roughly $18 billion, according to Bloomberg News.
The specifics of the offering, including timing, are subject to change, as per the sources. A representative for Novelis has declined to comment.
Morgan Stanley, Bank of America Corp., and Citigroup Inc. are collaborating with Novelis on the potential listing on the New York Stock Exchange, as outlined in the filing. The shares will be offered by a Hindalco subsidiary, with Novelis not receiving any proceeds from the sale.
Novelis is the largest producer of flat-rolled aluminum products globally, utilized in various products ranging from automobiles to beverage cans. In February, the company announced it had confidentially filed for the listing with the US Securities and Exchange Commission.
Approximately 42% of Novelis’ global net sales originate from North America, according to its IPO filing.
Hindalco acquired Novelis in 2007 at a valuation of around $6 billion, inclusive of debt, according to filings from that period.
