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7/24/17

Votorantim going public (from IKN427)

A snippet from yesterday's edition of The IKN Weekly, IKN427:



Votorantim moves to IPO
Coming soon, a big LatAm based mining IPO. Reports first appeared in April (25) about Brazil’s privately controlled (by the Ermirio de Moraes family) Votorantim Metais (26) plans to float and become a public company, now news from local press (27) last week stated with more confidence that, the country’s big base metals/iron ore producer that also owns the majority stake in Peru’s Milpo, is in advanced discussions for an international IPO with target listings in the NYSE and the Toronto TSX. The New York listing procedure is being led by JP Morgan, Morgan Stanley and Credit Suisse, with the Toronto IPO end being covered by BMO. Though details are still sketchy as they tend to be before the prospectus gets published, the reports talk of the company looking to get market by the end of this year and to raise around U$750m in the share allocation. This would move up its market cap to around U$4Bn and make a new major miner available to Northern investment cash. Those kind of ratio figures clearly show that the Ermirio de Moraes family intend to keep tight executive control of the company after the IPO is done.