ATLANTA - Novelis Inc., a prominent provider of sustainable aluminum solutions and a global leader in aluminum rolling and recycling, has initiated a roadshow for its upcoming initial public offering (IPO).
The company announced the planned sale of 45 million common shares currently held by its sole shareholder, a subsidiary of Hindalco Industries Limited. Novelis is also considering an over-allotment option, which would allow underwriters to purchase up to an additional 6.75 million shares within 30 days post the final prospectus issuance.
The anticipated price range for the IPO is between $18.00 and $21.00 per share. Novelis has applied for its common shares to be listed on the New York Stock Exchange under the ticker symbol "NVL."
It is important to note that Novelis will not benefit financially from the selling shareholder's proceeds. After the IPO's completion, Hindalco's subsidiary will retain ownership of approximately 555 million shares, equating to 92.5% of Novelis' total outstanding shares, or 91.4% if the over-allotment option is fully exercised by the underwriters.
The offering is being managed by Morgan Stanley, BofA Securities, and Citigroup as lead book-running managers. Wells Fargo Securities, Deutsche Bank Securities, and BMO Capital Markets are also serving as book-running managers, with additional co-managers including BNP PARIBAS, Academy Securities, Credit Agricole (OTC:CRARY) CIB, PNC Capital Markets LLC, and SMBC Nikko.
A registration statement for these securities has been submitted to the Securities and Exchange Commission (SEC) but has not yet been approved. The sale of these securities will not commence until the registration statement is effective, and will only be conducted via a prospectus.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Offers, solicitations, or sales will adhere to the Securities Act of 1933's registration requirements.
Novelis, a subsidiary of Hindalco Industries Limited, operates globally, partnering with industries such as aerospace, automotive, and beverage packaging to advance aluminum as the preferred material with circular solutions. The company's mission is to shape a sustainable world together.
InvestingPro Insights
As Novelis Inc. gears up for its initial public offering, potential investors are closely monitoring the company's financial health and market position. According to InvestingPro data, Novelis has a market capitalization of $1.114 billion, reflecting the company's scale in the sustainable aluminum solutions industry.
Despite a challenging period with a significant revenue decline of 50.42% in the last twelve months as of Q1 2024, Novelis has shown a quarterly revenue growth of 15.41% in Q1 2024, signaling potential recovery and resilience in its operations.
InvestingPro Tips suggest that investors should be aware of Novelis' price-to-earnings (P/E) ratio, which stands at 67.78, indicating a premium compared to industry peers. However, the adjusted P/E ratio for the same period shows a negative value (-26.9), which may raise concerns about profitability in the near term. The company's price to book ratio of 0.75 suggests that its stock is potentially undervalued, which could attract investors looking for growth opportunities.
For those interested in further analysis, InvestingPro offers additional tips on Novelis and other companies in the sector. Currently, there are 5 more InvestingPro Tips available that could guide investment decisions. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. The next earnings date is set for July 31, 2024, which will be a critical moment for investors to assess Novelis' financial trajectory and the impact of its IPO on the market.
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