Voto Cimentos IPO Adds Banks

Votorantim Cimentos has added a second tier of seven banks to its IPO expected to raise more than $5bn. Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and HSBC have joined as coordinators, according to a prospectus. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley are the global coordinators on the transaction. The exact timing remains to be determined and a price range has not been set. The deal is expected to launch as soon as this month. SEC filings last month indicated a $5.4bn-equivalent size. Primary shares, as well as secondary shares sold by Votorantim Industrial, are on offer. Votorantim Cimentos plans to use half of the primary proceeds for organic expansion and acquisitions, 35% for working capital and 15% for investments to improve existing operations. The issuer has operations on five continents, including business in North Africa, India and China. In LatAm, it has stakes in operations in Argentina, Chile, Bolivia, Uruguay and Peru. It reported Ebitda of BRL3.07bn ($1.55bn) in 2012.