Nexa Resources prices US $496M IPO at US $16 per share

Nexa Resources S.A. (TSX/NYSE: NEXA), formerly VM Holding S.A., has priced of its proposed initial public offering (IPO) of 31,000,000 common shares US$16.00 per share for gross proceeds of US $496 million. The US $16 offering is between its proposed US $18-21 offering price.

The offering consists of 20,500,00 common shares from treasury and 10,500,000 common shares by selling shareholder, Votorantim S.A.

The offering is expected to close on October 31, 2017. Nexa Resources common shares commenced trading on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) on October 27, 2017 under the symbol “NEXA”. Its stock opened at CDN $21.06 or US $16.41 and it traded at CDN $20.00 or US $15.59 as at Oct 27, 2017, 10:34 AM EDT.

J.P. Morgan Securities LLC, BMO Capital Markets, Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC are acting as global coordinators in this offering. BofA Merrill Lynch, Citigroup Global Markets Inc., Scotia Capital Inc., Banco Bradesco BBI S.A. and Credicorp Capital Sociedad Agente de Bolsa S.A. are acting as joint bookrunners. ABN AMRO Securities (USA) LLC, Banco do Brasil Securities LLC, Macquarie Capital Markets Canada Ltd., MUFG Securities Americas Inc., National Bank of Canada Financial Inc. and RBC Capital Markets, LLC are acting as co-managers.

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

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.

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.

photo credit: Nexa Resources S.A.

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.