Votorantim is considering an initial public offering of its cement business in North America, according to people familiar with the matter.
The company is in the early stages of preparing for a potential listing of the unit in New York, said the people, who asked not to be identified because the deliberations are private. The offer could happen as early as next year depending on market conditions, the sources said.
The decision to take the U.S. business public would follow similar transactions planned by other building materials companies seeking to benefit from higher valuations and more liquid markets. Swiss cement giant Holcim said in January it was planning to spin off its North American business and list in the US. Greece’s Titan Cement International also plans to list its US operations.
Votorantim has previously explored IPO scenarios. In 2013, Votorantim Cimentos canceled plans to raise up to US$3.7 billion in company-wide listings in Brazil and the US.
The company is still in negotiations and no final decision has been made on whether to IPO the unit, the people said. A Votorantim representative declined to comment.
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Votorantim, controlled by the Ermírio de Moraes family, has a broad portfolio with operations in 22 countries that covers sectors ranging from banks and steel to real estate and orange juice. It has important stakes in the aluminum producer Cia. Brasileira de Alumínio, the renewable energy generator Auren Energia and the zinc mining company Nexa Resources.
Votorantim’s strategy is similar to that of Cosan, the conglomerate owned by Brazilian billionaire Rubens Ometto, which filed for an IPO for its Moove lubricants unit. In October, Moove postponed the IPO, citing “adverse market conditions”.
