Aleris rolls toward IPO

Posted by tjdetai on August 23rd, 2015

Aleris formally launched its initial public offering this afternoon, one day after filing a preliminary prospectus that outlined the number of shares to be sold but no price guidance.

The latest filing set a price target on 31.25m shares at US-, implying a market capitalisation of as much as US.8bn.The interim filing was needed to gain approval from regulators on a 3.125-for-1 stock split.JP Morgan, Barclays Capital, Deutsche Bank, Bank of America Merrill Lynch and Goldman Sachs are looking to price on April 11.Aleris joins a growing number of industrial companies in the IPO pipeline, including Rexnord and MRC Global. Rexnord is scheduled to price this evening and MRC Global is expected April 11.

In the case of Aleris, Oaktree Capital Management and Apollo Management are leading secondary sellers that are selling a combined 21.9m shares, reducing their stakes to 42.9% and 13.5%, respectively.Aleris is using proceeds from the primary sale of 9.4m shares for general corporate purposes, including to fund construction of new aluminium rolling mill in China. The aluminium processor plans to spend US0m on capital expenditures in 2012.

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