Oct 15, 2012 - Brazilian renewables company CPFL Renovaveis may resume its planned initial public offering (IPO) at the end of this year or in early 2013, local news agency Agencia Estado reported on Thursday citing the company's CEO, Wilson Ferreira Junior.
The CEO reportedly voiced his optimism about market conditions improving very soon, thus permitting the conducting of the planned IPO, which was cancelled at the beginning of this month.
According to Ferreira Junior, the IPO is important for CPFL Renovaveis' growth, but the company has sufficient capital for its current projects, envisaging the development of 700 MW in wind, biomass and small-scale hydroelectric power plants (HPPs) ventures.
The IPO, when carried out, will guarantee CPFL Renovaveis' shareholders liquidity, Ferreira stressed as quoted by Agencia Estado.
The decision of Brazil to extend local energy concessions at lower contract prices has no direct impact on CPFL Renovaveis' plans, but as it has led to market fear and sharp fall of local utilities' stock, Ferreira Junior reportedly believes it is wiser to wait until the measures consequences become more clear.
(USD 1 = EUR 0.771)
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