Brazil's CSN says mining unit IPO to fund production capacity
Updates with business plan, shares, background
SAO PAULO, Sept 21 (Reuters) - Shares of Brazilian steelmaker Companhia Siderurgica Nacional CSNA3.SA rose in the morning trading as the company's board approved a long-awaited initial public offering by its mining unit CSN Mineracao SA to fund its expansion, according to a securities filing on Monday.
The steelmaker said it plans to use the proceeds of the offering to expand CSN Mineracao production capacity to 108 million tonnes from 33 million tonnes by 2033. The company did not disclose the amount of the IPO or when it would occur.
Shares were up 0.5%, outperforming the stock exchange index, which was down amid concerns over a global second wave of the novel coronavirus.
The offering may reach 10 billion reais ($1.84 billion), as Reuters reported earlier. Bank of America, XP Inc, Banco BTG Pactual SA and Morgan Stanley are expected to manage the offering.
CSN also unveiled on Monday its operational estimates, saying it expects 2020 earnings before interest, taxes, depreciation and amortization (EBITDA) to reach 9.75 billion reais.
In a note to clients, Itau BBA's analysts said the forecast implies a very strong performance in the second half of the year, as its EBITDA in the first half of the year came in at 3.25 billion reais.
($1 = 5.4362 reais)
(Reporting by Carolina Mandl; Additional reporting by Paula Laier, Editing by Alex Richardson and Steve Orlofsky)
((firstname.lastname@example.org; +55 11 5644 7703; +55 11 97116-3806;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.