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Neoenergia stock rises 8.4% on 1st day of trading

Neoenergia goes public. Image by Iberdrola (www.iberdrola.com)

July 2 (Renewables Now) - Shares in Neoenergia SA (BVMF:NEOE3B) rose 8.37% as the Brazilian power company made a debut on the Novo Mercado segment of the Sao Paulo Stock Exchange on Monday.

The stock, priced at BRL 15.65 (USD 4.07/EUR 3.6) apiece, fetched BRL 16.96 at the close.

Spanish utility and majority shareholder Iberdrola SA (BME:IBE), investment bank BB Banco de Investimento SA and pension fund Caixa de Previdencia dos Funcionarios do Banco do Brasil (Previ), floated 17.14% of the Neoenergia share capital, raising BRL 3.26 billion.

Following the sale of close to 29.7 million shares, Iberdrola still controls the company with a 50% stake plus one share. Previ, previously holding a 38.2% stake, owns 32.9% after the initial public offering (IPO). The stock market outing meant an exit for BB Banco de Investimento, which shed its entire 9.34% stake in Neoenergia.

Reacting to the IPO success, Iberdrola said Monday it will invest EUR 6 billion (USD 6bn) in Brazil during the 2018-2022 period.

Neoenergia operates 3.63 GW of generation capacity, 88% of which is renewable, according to the figures on its website. The company is present in 18 Brazilian states serving 34 million customers.

(BRL 1.0 = USD 0.26/EUR 0.23)

(EUR 1.0= USD 1.13)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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