RIO DE JANEIRO, BRAZIL – The largest aluminium producer in Brazil, Companhia Brasileira de Alumínio (CBA), on Tuesday applied for registration as a publicly-held company, according to information from the Securities and Exchange Commission (CVM), paving the way for a potential initial public offering (IPO).
According to the protocol, CBA’s application for a category A company is complemented by another to hold a public offering of securities, which enables it to sell shares in the market, among other purposes.
Founded in 1941 with the initial plan to explore bauxite deposits in Poços de Caldas (MG), CBA is headquartered in São Paulo and is part of the Votorantim Group, owned by the Ermírio de Moraes family.
In addition to its main aluminum production operation, CBA has its own hydroelectric plants and sells surplus energy unused by its plants in the market.
The company states in its financial report that it posted net revenues of R$5.41 (US$1) billion in 2020, up slightly from R$5.26 billion the year before.
The announcement comes amid a surge in global metal commodity prices, underpinned by expectations that China’s currently strong demand for these products should be boosted in the coming months and years by other major markets, such as the United States, amid expectations of higher infrastructure spending in an attempt to help ease the economic impact of the Covid-19 pandemic.
Source: exame