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Renewables-heavy Brazilian utility Neoenergia files for IPO

Wind park in Brazil. Author: Fotos GOVBA. License: Creative Commons, Attribution 2.0 Generic

Sep 1 (Renewables Now) - Neoenergia SA, the renewables-heavy utility through which Spain’s Iberdrola (BME:IBE) plans to channel all its investments in Brazil, on Thursday made a step towards becoming a publicly-traded company.

The company said in a regulatory filing it has filed a request with the country’s Securities and Exchange Commission (CVM) regarding the planned initial public offering (IPO). Shareholders of the firm have approved boosting its capital limit to BRL 12.83 billion (USD 4.08bn/EUR 3.4bn) from some BRL 3.5 billion, it said.

According to a previous report by Reuters, an IPO could value Neoenergia at about BRL 35 billion. Its investors are considering listing the company in Sao Paulo and New York, the news agency said.

Just a week earlier, Iberdrola completed the merger of Neoenergia with its Brazilian unit Elektro Holding SA in what it said was “one of the most important corporate operations ever”. The Spanish group now holds a 52.45% interest in the enlarged Neoenergia, while pension fund Previ and Banco do Brasil SA holds stakes of 38.21% and 9.35%, respectively.

The combined company, now being Brazil’s largest electricity utility by number of customers according to Iberdrola, will serve an area with a population of over 34 million people. It will be active in the wind power segment through Forca Eolica do Brasil. Its total wind and hydropower capacity, either in operation or under construction, amount to 3,546 MW. The company also has 530 MW of thermoelectric generation capacity.

(BRL 1.0 = USD 0.318/EUR 0.267)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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