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Neoenergia prices IPO at midpoint of indicative range

Wind turbines. Author: Rex Brown. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

June 28 (Renewables Now) - Brazilian power company Neoenergia SA, controlled by Spain’s Iberdrola SA (BME:IBE), has priced its initial public offering (IPO) at BRL 15.65 (USD 4.08/EUR 3.59) per share.

Iberdrola informed on Friday that the final price was set at the midpoint of the indicative range, valuing the IPO at about BRL 3.25 billion if Neoenergia decides to float 17.14% of its share capital. According to a filing by the Brazilian company, there is an option for a placement of an additional lot. In this case, the net proceeds could reach BRL 3.74 billion for 19.71% of the share capital.

Neoenergia’s shareholders, Iberdrola, investment bank BB Banco de Investimento SA and pension fund Caixa de Previdencia dos Funcionarios do Banco do Brasil (Previ), will sell about 208 million shares.

Iberdrola, a holder of a 52.45% stake in Neoenergia, will put up nearly 29.7 million shares and reduce its ownership stake to 50% post-IPO. In turn, BB Banco de Investimento will exit Neoenergia, leaving its 9.34% stake to the market.

The additional shares will be coming out of Previ's slice. Previ will trim its share capital down to 30.29% from the current 38.21% if it decides to place additional shares.

The plan is to begin trading on July 1 and settle the offer on July 2. Neoenergia will list its shares on Novo Mercado, a special listing segment of the Sao Paulo stock exchange which requires companies to follow specific corporate governance and transparency standards beyond those demanded by the Brazilian legislation.

(BRL 1.0 = USD 0.26/EUR 0.23)

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Sladjana is the newest addition to the Renewables Now team. She has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry.

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