Aluminum recycler Novelis hits pause on plan to raise nearly $1 billion in IPO

“There was a lot of interest in Novelis and strong support for the company and its growth trajectory,” the company said in a statement. “However, market conditions did not support achieving the premium outcome we were seeking. Novelis will continue to evaluate the timing of the offering in the future.”

The the world’s largest aluminum recycler did not elaborate further.

Financial markets have been volatile amid concerns about the economy. The Federal Reserve is scheduled to meet June 11-12 and is unlikely to cut interest rates as recent economic indicators show mixed signals on whether progress is continuing or falling slack.

In a look back at its last meeting in April, the Federal Open Market Committee said inflation had remained “more persistent than previously expected,” while noting a generally resilient economy. Still, the latest reports on consumer and manufacturing activity are showing some cracks.

Novelis, which is backed by Indian billionaire Kumar Mangalam Birla’s Hindalco Industries, had planned to over a price per common share between $18-$21 and applied to list on the New York Stock Exchange under the symbol “NVL.”

The company, whose customers include Ball Corporation, Trane Technologies and Jaguar Land Rover, operates 33 facilities in nine countries with about 13,170 employees. It was acquired by Hindalco in 2007. In that time, Novelis has expanded. It acquired Ohio-based aluminum producer Aleris Corporation in 2020. The $2.8-billion deal gave Novelis entry into the aerospace sector and boosted its high-recycled-content building and construction business, as well as its footprint in Asia.

Novelis is currently building a greenfield recycling and rolling plant in Bay Minette, Alabama, to serve the North American beverage packaging and automotive markets. That plant is expected to be commissioned in fiscal 2027.