Novelis, the American arm of Indian aluminum giant Hindalco Industries, has announced the price range for its upcoming initial public offering (IPO) in the United States. The company will be offering shares to the public at a price between $18 and $21 each.
An IPO is when a company sells its stock to the public for the first time. This allows the company to raise money to grow its business. In this case, the money raised by Novelis will go to Hindalco, the parent company.
Depending on the final price per share, Novelis expects to raise between $810 million and $945 million through the IPO. This number could increase to a range of $931.5 million to $1.08 billion if underwriters exercise a special option to sell additional shares, known as the greenshoe option.
A successful IPO would allow Hindalco to reduce its ownership stake in Novelis slightly, while still holding a majority share. After the IPO, Hindalco is expected to own around 92.5% of Novelis’s common stock.
The price range announced by Novelis indicates a potential market value for the company of between $10.8 billion and $12.6 billion. This could be an attractive opportunity for investors interested in the aluminum industry. However, it’s important to remember that IPOs can be risky, and the price of a stock can fluctuate significantly after it starts trading publicly.
The IPO market has been heating up in recent months, with several companies going public and raising significant amounts of capital. This could be a good time for Novelis to tap into investor interest and raise the funds it needs to grow.
What Does Novelis Do?
Novelis is the world’s largest recycler of aluminum. The company produces aluminum sheets and coils used in a wide variety of products, including beverage cans, car parts, and construction materials.
What’s Next for Novelis?
Novelis has not yet announced a specific date for its IPO. However, the company has begun its roadshow, a series of meetings with potential investors to generate interest in the offering. Once the IPO is complete, Novelis’s shares will begin trading on the New York Stock Exchange under the ticker symbol “NVL.”