Holcim, the Swiss cement giant, saw its share price rise on plans for a spin-out of its American business with a float in New York slated for the first half of 2025.
The company, in a statement following recent media reports, confirmed its plan to hive off the US business that presently represents around 40% of group profits.
It comes as the company expects to ascribe a higher valuation for the assets via the domestic listing of the American business.
Holcim’s Zurich-listed stock, meanwhile, climbed around 4% in Monday’s dealings to trade at 66.68 Swiss francs per share (roughly equating to US$77.20 per share).
“Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet,” Holcim chief executive Jan Jenisch said in a statement.
“The success of our North American business makes it the leading pure-play building solutions company in the region.
“With a US listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets.
“As we fully capitalize on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders.”