The company said in January that it will spin off its North American business into a separate US-listed entity, which could be valued at more than $30 billion. A dual listing is among options being considered, and no final decision has been made, said the people, asking not to be identified because the information was private.
The considerations around a dual listing come because Swiss and other European funds may have to sell the new Holcim shares listed in the US, some of the people said. That would result in a so-called flow back of shares that would weigh on the unit’s share price and potentially limit its inclusion in a large US index, they said.
At the same time, the company has to weigh the risk that a dual listing could result in lower trading volumes for the US stock, though a Swiss listing would help the unit retain investors at home, the people 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 about the new entity’s headquarters. The new US unit is set to be headquartered in Zug, Switzerland, due to tax advantages, while its operational base will be in Chicago, one of the people said.
A representative for Holcim declined to comment.US listings have become increasingly appealing to European companies because the country offers a broader investor base and bigger pool of capital, allowing for higher valuations. Construction company CRH Plc moved its primary listing from London to New York last year, and has seen its shares soar more than 60% since.Like CRH, Holcim is seeking to benefit from rapid US market growth as builders race to relieve a lack of single-family homes and meet regulatory pressures for more energy-efficient buildings. Chairman and former Chief Executive Officer Jan Jenisch said in February that he values Holcim’s North America business at around $50 billion because it is likely to see faster growth than its European counterpart after the separation.
The stock has gained about 31% since the cement giant announced the spinoff plans in late January.