Evraz North America Files For IPO

(RTTNews) - Evraz North America Ltd., the U.S. arm of Russian steelmaker Evraz plc (EVR.IL), has filed for an initial public offering with the U.S. Securities and Exchange commission.

Based in Chicago, Evraz North America operates six production sites in addition to scrap processing units, a plate mill and a wire rod mill. The company pegs its collective annual capacity at around 3.5 million tons of finished steel products

Evraz is the largest producer in the North American rail market with market share of 39 percent, the company said in a filing, as well as in the North American large-diameter Pipe market with market share of 47 percent.

The company will use some of the proceeds from the offering to purchase the stake it doesn't already own in its Canadian unit.

Incorporated as Viscaria Ltd. on November 28, 2012 in England, the company was renamed Evraz North America this August. Prior to the offering, the company will be converted into an English public company limited and renamed Evraz North America plc.

The filing with the SEC did not reveal the number of shares the company plans to sell or their price.

For the six months to June, Evraz's net earnings surged to $40 million, from $1.6 million last year, on revenues of $1.57 billion which derived from sales of 1.4 million tons of steel products.

During 2013, the company posted a loss of $709.3 million on revenues of $2.75 billion from sales of 2.5 million tons of steel products

Citigroup and Goldman, Sachs & Co. are acting as join book-runners for the offering.