(Bloomberg) -- Titan Cement International SA has selected Citigroup Inc. and Goldman Sachs Group Inc. to help arrange the planned listing of its US business next year, according to people familiar with the matter.
The company hired the banks to prepare Titan America for an initial public offering in New York, the people said, asking not to be identified discussing confidential information. Titan Cement plans to sell a minority stake through the IPO and raise at least $500 million, the people said.
The controlling families are seeking a valuation of more than $2 billion in a potential listing, the people said.
Deliberations are ongoing and no final decisions have been made on the size of the stake sale, the people said. Representatives for Titan Cement, Citigroup and Goldman declined to comment.
The appointment came after Titan Cement in May said it intends to list the US business by selling a minority stake. It said at the time it expects the offering to be completed in early 2025.
Titan America reported sales of about $1.6 billion in 2023 and its earnings before interest, taxes, depreciation and amortization was $319 million, according to the company’s latest annual report. The unit accounted for nearly 60% of Titan Cement’s total sales in that period.
Shares of Titan Cement have risen almost 80% in the past year, giving it a market value of about €2.5 billion ($2.8 billion).
A number of European firms are exploring listing their US units in New York, attracted by the deeper capital markets, higher valuations and a broader investor pool. Much larger Swiss cement giant Holcim AG earlier this year also said it plans to separate its North American business and list it in the US.
©2024 Bloomberg L.P.
