(Bloomberg) — Swiss construction company Holcim is considering a dual listing of its North American unit in the U.S. and Switzerland, people familiar with the matter said.
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The company announced in January that it would spin off its North American operations as a separate U.S.-listed company, with a potential valuation of more than $30 billion. The people, who requested anonymity because the information is private, said a dual listing is also an option being considered, but no final decision has been made.
Some people familiar with the matter said the consideration of a dual listing was due to the possibility that Swiss and other European funds would have to sell Holcim’s new U.S.-listed shares. That could create a so-called backflow of stocks, putting pressure on the sector’s stock prices and limiting its inclusion in large U.S. indexes.
At the same time, the company needs to consider the risk that a dual listing could reduce trading volumes for U.S. stocks, although a Swiss listing would help keep investors in the country, the people said. said. At least 30% of Holcim’s shareholders are based in Switzerland, according to data compiled by Bloomberg.
Preparations for the North American spinoff also include discussions regarding the new company’s headquarters. The new U.S. unit will be headquartered in Zug, Switzerland, with tax incentives, and will have operations in Chicago, one of the people said.
A representative for Holcim declined to comment.
A dual listing could be welcome news for European markets, which face intense competition from U.S. exchanges.
John Prassard, a director at Mirabeau & Cie, said: “A dual listing could attract European investors and maintain visibility in Europe, which could be seen as beneficial for the continent. But only in the US. “Listing on the stock market could increase liquidity and strengthen ties with Europe.” Strengthen the unit with US peers and attract more institutional investors. ”
Irish construction materials group CRH Plc moved its primary listing from London to New York last year, while Swedish buy-now, pay-later payments giant Klarna Bank AB is considering an initial public offering in the United States, Bloomberg News reported. Ta. Greece’s Titan Cement International SA plans to discontinue operations in the United States, and British brokerage TP ICAP Group is considering listing its data business in New York.
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Holcim is poised to benefit from rapid growth in the U.S. market as builders race to solve a shortage of single-family homes and respond to regulatory pressures for more energy-efficient buildings. Chairman and former CEO Jan Jenisch said in February that he valued Holcim’s North American business at about $50 billion after the separation, with the company expected to grow faster than its European counterpart. said.
Shares have risen about 31% since the cement giant announced its spinoff plans in late January.
–With assistance from Pablo Mayo Cerqueiro.
(Updates with analyst comment and further details from paragraph 8.)
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