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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 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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