RIO DE JANEIRO, BRAZIL – The suggested price range for shares in the operation varies between R$18.20 (US$3.69) and R$25.50
InterCement has released the schedule for its initial public offering (IPO). This is a secondary operation, in which the funds raised are directed to selling shareholder InterCement Participações.
The suggested price range for shares in the operation varies between R$18.20 and R$25.50. Considering the range midpoint of R$21.85, the operation may raise R$3.264 billion. The base offer is for 149,394,665 shares and may be increased by additional lots, 20% of the total; and supplementary lots, 15% of the total.
Controller InterCement Trading and Inversiones’ stake, 100% today, may stand between 63.70% and 51%, depending on the placement or otherwise of extra lots in the operation.
InterCement Participações, in addition to its presence in the Brazilian market, also operates in Argentina, Egypt, Mozambique and South Africa, and has a production capacity of 37 million tons of cement per year in its 33 production units.
The company is one of the leaders in cement production in the Brazilian market, with an installed capacity of 17.2 million tons, 12.2 million of which active and 5.0 million inactive, a total consolidated sales volume of about 8.7 million tons (in 2020) and 2.1 million tons of cement in the 3-month period ending March 31, 2021.
According to the National Union of the Cement Industry (SNIC), the company accounted for approximately 15% of the total volume of cement sold in Brazil in 2020, placing it as the country’s second largest cement company.
The reservation period for share purchase runs from July 1 to July 13. Pricing is scheduled for July 14. The debut on B3’s Novo Mercado is scheduled for July 16.
The offering is managed by Bradesco BBI, Itaú BBA, Bank of America, J.P. Morgan and UBS Brasil.
Source: Valor