Nexa Resources prices IPO at US $18-21 for up to US $651M

Nexa Resources S.A., formerly VM Holding S.A., intends to issue 31,000,000 common shares, 20,500,00 common shares from treasury offering and 10,500,000 common shares by Votorantim S.A. by way of secondary offering, at an offering price between US $18.00 and US $21.00.

The selling shareholder, Votorantim S.A., has granted the underwriters the right to purchase an additional 4,650,000 common shares within 30 days from the date of this prospectus to cover over-allotments.

Following the closing of the initial public offering (IPO), Nexa Resources will have 133,320,513 common shares issued and outstanding. Votorantim S.A. will continue to own 85,655,128 shares (64.25%) assuming full exercise of the underwriters’ over-allotment option.

Nexa Resources intends to apply for listing of the common shares on the New York Stock Exchange in the United States and the Toronto Stock Exchange in Canada under the symbol “NEXA”.

The offering is conducted in Canada by J.P. Morgan Securities Canada Inc., BMO Nesbitt Burns Inc., Morgan Stanley Canada Limited, Credit Suisse Securities (Canada), Inc., Merrill Lynch Canada Inc., Citigroup Global Markets Canada Inc., Scotia Capital Inc., Macquarie Capital Markets Canada Ltd., MUFG Securities (Canada), Ltd., National Bank Financial Inc. and RBC Dominion Securities Inc. and in the United States and/or jurisdictions located outside of Canada and the United States by J.P. Morgan Securities LLC, BMO Capital Markets Corp., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., Banco Bradesco BBI S.A., Credicorp Capital Sociedad Agente de Bolsa S.A., ABN AMRO Securities (USA) LLC, Banco do Brasil Securities LLC, Macquarie Capital Markets North America Ltd., MUFG Securities Americas Inc., National Bank of Canada Financial Inc. and RBC Capital Markets, LLC.

Nexa Resources’ Canadian and US counsels are Cleary Gottlieb Steen & Hamilton LLP and Stikeman Elliott LLP. Clifford Chance is Nexa Resources Luxembourg counsel. Skadden, Arps, Slate, Meagher & Flom LLP and McCarthy Tétrault LLP act as legal counsel to the underwriters.

Luxembourg registered Nexa Resources is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining assets in Latin America. It operates and owns five long-life underground mines, three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil.

Nexa Resources commenced operating in 1956 under the name “Companhia Mineira de Metais”, or CMM, in the state of Minas Gerais, Brazil. In 1996, Votorantim Group re-organized its various industrial units. Votorantim Metais S.A. was created to manage the zinc, nickel and steel businesses, and later, aluminum. In 2008, the steel assets and activities were separated. In 2016, Votorantim Metais S.A. was further restructured, focusing mining and metal assets in Brazil and Peru focused in zinc and copper, while the aluminum and nickel businesses were separated.

For the year ended December 31, 2016, Nexa Resources reported US $1.92 billion in revenues, US $130 million in operation profit and US $110.5 million in net profit.

photo credit: Nexa Resources

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.