Vedanta shares in focus as CopperTech Metals targets $3.6 billion IPO valuations

Shares of Vedanta Ltd are in focus on Wednesday as the Vedanta group firm CopperTech Metals is said to be targeting a valuation of up to $3.57 billion in its US initial public offering (IPO). On Tuesday, CopperTech Metals Inc announced the launch of the roadshow for its IPO of 23,529,412 shares of its common stock. The IPO price is expected to be between $16 and $18 per share. 

To recall, CopperTech Metals Inc had on June 2 publicly filed a registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) relating to the proposed IPO of its common stock.

Citigroup and Cantor are acting as joint book-running managers for the proposed offering. BMO Capital Markets, RBC Capital Markets, TD Securities, Stifel, William Blair, and Needham & Company are acting as book runners for the proposed offering, with Roth Capital acting as co-manager.

Established by Vedanta Resources (VRL), CopperTech is a US-domiciled, integrated copper and cobalt producer. CopperTech’s flagship asset, the Konkola Copper Mines, is a high-grade copper and cobalt producer strategically located in Zambia’s Copperbelt Province. 

The US IPO market has picked ​up pace after a brief lull in March as buoyant stock ​markets and strong investor appetite have created a more ⁠favorable backdrop for new listings, Reuters reported. Vedanta Resources ⁠has invested over $3 billion in Konkola and held majority ownership since 2004. It regained control of Konkola in July 2024 after Zambia's previous administration of former ⁠president Edgar ​Lungu seized the asset in 2019, Reuters reported.

Vedanta's parent Vedanta Resources Limited’s standalone total debt stood at $5.2 billion in FY2026  against $5.1 billion at the end of FY2025. VRL’s refinancing risk has also reduced significantly in the last few years, supported by repayments and an elongation of the debt maturity profile, rating agency ICRA noted in a May 27 note.

The reduction in VRL’s interest cost and annual maturities is expected to significantly lower the dividends from fiscal 2027 onwards, ICRA said on Vedanta.  

"Going forward, a timely closure of any refinancing requirement either at VRL or other entities in the Vedanta Group will remain a key monitorable. The Group’s liquidity position also remained healthy with a material improvement in the cash flow from operations," ICRA noted.

CopperTech is planning to spend $2.7 billion ​over the next five fiscal years to ramp up copper production ​at Konkola to an average of roughly 270 kilotonnes per annum from fiscal 2030.