Brazil's InterCement Participações SA of Brazil plans an initial public offering (IPO) of its operations in Europe and Africa early next year, reports Reuters. InterCement would sell up to 49 per cent of the unit, which will group the activities in these countries, the sources added.

In a statement to Reuters, InterCement confirmed the IPO plans. "InterCement is considering an IPO of its assets in Portugal and Africa, proceeding with the deleveraging process that has been publicly announced," the company said

Camargo Corrêa SA, the controlling shareholder in InterCement, expects its operations in Portugal and African countries to be valued at EUR1.5bn (US$1.76bn), the people said, asking for anonymity because decisions are still private.

Camargo Corrêa had initially expected to list the unit this year, but volatility related to Brazilian presidential elections has postponed the expected date to 2019.Camargo Corrêa wants proceeds from the listing in Europe to be used to reduce debt and invest in modernising its Brazilian mills, which have been suffering with the shrinking of the local cement market.

The industry's cement sales in Brazil fell 6.5 per cent last year and are yet to recover this year. Cumulatively, they are down 25 per cent since 2015, according to industry data. Many of the 20 cement makers in the country are operating at half of their capacity, the sources said.

InterCement has already raised US$954m with the successful listing of its Argentinian unit Loma Negra Cia Industrial Argentina SA in November, in a dual listing in Buenos Aires and New York.