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(Bloomberg) -- Titan America SA shares increased 4.4% after the company and its owner Titan Cement International SA raised $384 million in an initial public offering.
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The US firm’s stock closed at $16.70 apiece on Friday in New York, above the $16 IPO price. The company and Athens-headquartered Titan Cement had marketed 24 million shares for $15 to $18 each, its filings showed.
The trading gives Titan America a market value of around $3.1 billion, based on the outstanding shares listed in the filings.
Several European firms are exploring listings in New York for their US units, attracted by the deeper capital markets, higher valuations and a broader investor pool. Much larger Swiss cement firm Holcim Ltd. is spinning off its North American business to focus on rapid growth in the US, and plans to list the shares in Switzerland and New York.
Shares of Titan Cement in Brussels have soared 84% over the past year, giving it a market value of about €3.58 billion ($3.7 billion).
US Growth
Titan Cement traces the beginning of its US unit to a 1989 investment in the Essex Cement import terminal in New York, according to the filings. Titan America derived 61% of its revenue in 2023 from its Florida segment, where it operates facilities including a cement plant, three mines and a multi-product marine import terminal.
“We have grown to the point that we became 60% of Titan Cement International and we are a pure-play,” Titan America Chief Executive Officer Bill Zarkalis told Bloomberg News in an interview. “So it made sense ahead of the explosive growth we expect to have Titan America carved out as a standalone public company, with its own strong balance sheet.”
Zarkalis doesn’t expect the prospect of trade conflict between the US and other countries to have a pronounced effect on Titan America, which has multiple sources for imported material, he said.
“We don’t think we will face any disruption if tariffs are applied, because we can switch between sources from both within and outside the European Union,” he said.
Titan America had $129.5 million in net income on $1.24 billion of revenue for the nine months ended Sept. 30, compared with $110 million of net income on revenue of $1.19 billion in the corresponding period the year before, the filing shows.