By Tatiana Bautzer
SAO PAULO, Feb 26 (Reuters) - Brazilian steelmaker Cia Siderurgica Nacional is working with the investment banking units of Banco Bradesco SA and JPMorgan Chase & Co to arrange the initial public offering of its cement unit, two sources with knowledge of the matter said.
CSN, as the company is known, expects to conclude the IPO of the unit by the fourth quarter, the people added, asking for anonymity to disclose private talks.
CSN declined to comment. Bradesco and JPMorgan did not immediately comment on the matter.
The banks are expected to lead the syndicate but other banks will also be hired, the sources added.
The steelmaker concluded the listing of its mining unit CSN Mineracao SA earlier this month at a market capitalization of 100 billion real ($18 billion), double that of the parent company.
In a recent earnings conference call, executives said CSN had earlier this month carved out a separate subsidiary for the cement operations.
There are no valuation estimates for the cement unit yet, but it will probably be a fraction of the mining unit's capitalization, one of the sources said.
The exact timing of the listing will depend on the growth of cement sales, a third source added. Sales have declined in recent years but the market in Brazil recovered last year with 11% sales growth according to industry data.
The net revenue of CSN's cement unit rose 50% last year, to 858 million reais. Its earnings before interest, taxes, depreciation and amortization, or EBITDA was 271 million reais, up from the previous year's 11 million reais.
(Reporting by Tatiana Bautzer;Editing by Elaine Hardcastle)