April 24 (Renewables Now) - Brazilian electric utility Neoenergia SA will seek shareholder approval of a plan to list the company on the Sao Paulo stock exchange, its board of directors agreed on Tuesday.
Spain’s Iberdrola SA, which controls a 52.45% stake in Neoenergia, said this morning in a regulatory filing that an extraordinary shareholders’ meeting would take place on April 29. The shareholders will vote on the request to register the public offering of Neoenergia’s shares with the Brazilian securities and exchange commission CVM.
Neoenergia will seek admission to trade on Novo Mercado, a special listing segment of the Sao Paulo’s stock exchange, which requires companies to abide by a different set of transparency and corporate governance standards. The modification of the power company’s bylaws to adapt them to Novo Mercado’s listing rules will also be put to the vote, Iberdrola said.
This is Neoenergia’s second attempt at going public. In 2017, the utility backed out of an IPO at the last moment citing market conditions. At the midpoint of the range set for the offering, it would have raised almost BRL 2.86 billion (USD 728m/EUR 648m).