Intercement Brasil to hold IPO as controller sells stake in business

RIO DE JANEIRO, BRAZIL – Intercement Brasil has applied to register for an initial public offering (IPO), an operation that will enable its controlling shareholder, Mover Holding, to sell a stake in the business.

The company is a branch of the InterCement Group, which also operates in countries such as Argentina, Egypt, Mozambique and South Africa, with a production capacity of 37 million tons of cement per year.

Intercement is Brazil’s second largest cement producer, with an installed capacity of 17.2 million tons, distributed among its 15 units.

In 2020, it sold around 8.7 million tons, including the Cauê, Goiás and Zebu brands. The Brazilian subsidiary also operates 19 concrete plants and 11 limestone quarries.

Intercement also has minority stakes in 3 hydroelectric plants (Tocantins, Rio Grande do Sul and Santa Catarina), which produce 74% of the energy used in its plants.

Last year, the company posted net revenues of R$2.4 billion (US$452 million), a 26.9% increase over 2019, with EBITDA margin rising from 13.9% to 28.6%.

The IPO operation will be coordinated by Bradesco BBI, Bank of America, Itaú BBA, JPMorgan and UBS-BB.

The announcement comes one day after rival CSN Cimentos, a subsidiary of steelmaker CSN, also applied to register for an IPO.

The request for IPO registration also comes amid a rise in world commodity prices, supported by the expectation that the currently strong demand by China for these products should increase in the coming months and years in other major markets, such as the United States.