(Bloomberg) -- Brazilian conglomerate Votorantim SA is considering an initial public offering of its North American cement business, people familiar with the matter said.
Votorantim is in the early stages of internal preparations for a potential New York listing for the unit, according to the people, who asked not to be identified because deliberations are private. It could move forward with an offering as soon as next year depending on market conditions, the people said.
The move would follow similar planned transactions by other building materials companies, which have been looking to benefit from the higher valuations and more liquid markets in New York. Swiss cement giant Holcim Ltd. said in January that it was planning to separate its North American business and list it in the US. Greece’s Titan Cement International SA is also planning to float its US operations.
In 2013, Votorantim attempted to raise $3.7 billion through a dual listing of its entire cement business in Brazil and the US. It ended up canceling the plans amid a stock market slump.
Deliberations are ongoing and Votorantim hasn’t made a final decision on pursuing an IPO of the unit, the people said. A representative for Votorantim declined to comment.
Votorantim, controlled by the Ermirio de Moraes family, has a sprawling portfolio with operations in 22 countries spanning industries from banking and steel to property and orange juice. It has major stakes in aluminum producer Cia. Brasileira de Aluminio, renewable power generator Auren Energia SA and zinc miner Nexa Resources SA.
The North American division was the biggest profit contributor to Votorantim’s cement unit in the second quarter, according to its latest financial report. The North American operations’ net revenue increased about 9% last year to $1.57 billion. Adjusted earnings before interest, taxes, depreciation and amortization rose around 30% to $394 million.
Other local conglomerates have also attempted to list some subsidiaries in the US, though the efforts haven’t always been successful. Brazilian billionaire Rubens Ometto’s Cosan SA last month postponed an IPO of its Moove Lubricants Holdings unit, citing adverse market conditions.
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