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Loma Negra plans to raise $800 million in U.S.-Argentina IPO
October 13, 2017 / 5:40 PM / 2 months ago

Loma Negra plans to raise $800 million in U.S.-Argentina IPO

SAO PAULO, Oct 13 (Reuters) - Loma Negra Cia Industrial Argentina SA, the country’s largest cement producer, plans to raise up to $800 million in an initial public offering in Argentina and the United States.

Most of the proceeds, around $700 million according to a securities filing, will go to parent company Intercement Brasil SA, which is selling a 32 percent stake in the company, to pay down debt. After the IPO, Intercement will hold a 57 percent stake in the Argentine producer.

Loma Negra intends to sell 50 million American Depositary Shares (ADS) representing five common shares each, for between $15 and $19. Common shares in Argentina will be sold for between $3 and $3.80.

Intercement is owned by construction conglomerate Camargo Correa SA, which is battling the effects of Brazil’s longest recession on record and a corruption probe that ensnared the group’s engineering unit.

Loma Negra will receive around $90 million from the IPO through the issuance of new shares, considering a mid-range pricing. The cement producer aims to fund the expansion of the L‘Amali plant, in the Buenos Aires region.

The filing did not disclose the schedule for the transaction. Reuters reported Loma Negra had hired banks to underwrite an IPO on Sept. 6.

$1 = 3.12 reais Reporting by Tatiana Bautzer: Editing by Andrew Hay

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