Novelis (NVL) to Raise $878 Million in IPO

Novelis (NVL) plans to raise $878 million in an initial public offering on Thursday, June 6th, IPO Scoop reports. The company will be issuing 45,000,000 shares at a price of $18.00-$21.00 per share.

In the last year, Novelis generated $16.2 billion in revenue and $600 million in net income. The company has a market cap of $11.7 billion.

Morgan Stanley, BofA Securities, Citigroup, Wells Fargo Securities, Deutsche Bank Capital Markets and BMO Capital Markets acted as the underwriters for the IPO and BNP Paribas, Academy Securities, Credit Agricole CIB, PNC Capital Markets and SMBC Nikko were co-managers.

Novelis provided the following description of their company for its IPO: “Novelis’ purpose of “Shaping a Sustainable World Together” is at the core of who we are. (Incorporated in Canada)  Our purpose guides our strategy and the way we work, the decisions we make and the partnerships we pursue. In line with our purpose, our vision is to “advance aluminum as the material of choice with circular solutions.” Our customers around the world rely on us for sustainable solutions and products, and we make positive contributions in the communities where we live and work. We consider ourselves the leading producer of innovative, sustainable aluminum solutions and the world’s largest recycler of aluminum. Specifically, we believe we are the leading provider of low-carbon aluminum solutions, helping to drive a circular economy by partnering with our suppliers and customers in beverage packaging, automotive, aerospace and specialties (a diverse market including building & construction, signage, foil & packaging, commercial transportation and commercial & consumer products, among others) markets globally. Throughout North America, Europe, Asia, and South America, we have an integrated network of 32 world-class, technologically advanced facilities, including 14 recycling centers, 11 innovation centers, and 13,190 employees. Aluminum is the sustainable material of choice for a wide range of growing end-markets that require strong, yet lightweight, sustainable solutions. The virtually infinite recyclability of aluminum is essential to our innovative circular business model. With operations on four continents in nine countries, we consider our global scale to be a distinct competitive advantage. In addition, our leading position in aluminum recycling combined with our cutting-edge operational processes provides us with an advantaged cost position, increasing our operating cash flow. For fiscal 2024, we had total flat-rolled product shipments of 3,673 kt, net sales of $16.2 billion, net income of $600 million, and Adjusted EBITDA of $1,873 million. *Note: Net income and revenue are for our Fiscal Year 2024, which ended on March 31, 2024. (Note: Novelis disclosed terms for its IPO in an F-1/A filing dated May 28, 2024: The selling shareholder will offer 45.0 million shares at a price range of $18.00 to $21.00 to raise $877.5 million, if priced at the mid-point of its range. All of the stock in the IPO is being offered by the selling shareholder. The company will not receive any proceeds from the IPO. Background: Novelis filed its F-1 for its IPO on May 13, 2024, without disclosing terms. The company says the IPO’s estimated proceeds would be $100 million. That is most likely a placeholder figure. Some IPO pros estimate that Novelis’ IPO could raise as much as $1.3 billion.)   “.

Novelis was founded in 2004 and has 13190 employees. The company is located at 3550 PEACHTREE ROAD SUITE 1100 ATLANTA GA 30326 and can be reached via phone at (404)-760-4000 or on the web at http://www.novelus.com/.

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