Neoenergia Plans to Raise Funds in IPO

Published: Aug 31 2017
Deal Summary

Neoenergia S.A., a power generation, transmission and distribution company, intends to issue shares in an initial public offering (IPO). The company intends to list its shares on Sao Paulo and New York stock exchanges.

The share holders of Neoenergia have approved primary and secondary share offerings by the company. The shareholders also approved the increase in authorized capital limit from BRL3,500 million (USD1,110 million) to up to BRL12,830 million (USD4,043.56 million).

Earlier on July 14, 2017, Reuters, citing people familiar with the matter, reported that the IPO of shares may value Neoenergia at BRL35,000 million (USD11,000 million). The IPO could be launched around September 2017, when the company is expected to have won industry regulatory approval for Elektro Eletricidade & Serviços SA's takeover. Iberdrola SA will have 52.4% of Neoenergia once the takeover is completed. The dual listing will be a so-called secondary offer, allowing Banco do Brasil SA and pension fund Previ Fundaçao to sell part of their 9.4% and 38% stakes, respectively, in Neoenergia, the reports added.

Deal History:

Rumor: On July 14, 2017, Neoenergia intended to issue shares in an IPO, as reported by the sources citing people familiar with the matter.

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