Novelis is targeting a valuation of up to $12.6 billion in its US stock market debut, the maker of aluminum products revealed on Tuesday.
A subsidiary of Hindalco Industries, Novelis is the world’s largest rolled aluminum sheet producer, with customers including Coca-Cola, Ford and Jaguar Landrover.
In its initial public offering (IPO), the company intends to raise up to $945 million through the sale of 45 million shares priced in the range of $18 to $21 per share.
At the midpoint of the price range, the company will raise about $877.5 million giving it a market capitalization of about $11.7 billion.
It intends to list its shares on the New York Stock Exchange under the ticker symbol “NVL.”
Morgan Stanley (NYSE:MS), BofA Securities and Citigroup Global Markets are the lead underwriters for the offering.
It is expected that Novelis will grant the underwriters the option to purchase up to an additional 6.75 million shares to cover over-allotments.
Hindalco will own about 91.4% of Novelis’ outstanding shares after it goes public if the underwriters exercise their over-allotment option in full.