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Neoenergia plans dual listing: Reuters
Posted on Friday, 14 July 2017 11:45
Neoenergia is working on opening up its equity base to new investors by way of a dual listing which could value the Brazilian energy utility at up to BRL 35.00 billion (USD 10.90 billion), people familiar with the matter told Reuters.

According to these sources, who declined to be named as the process is still private, the initial public offering (IPO) would comprise a sale of existing shares by Banco do Brasil and Previ Fundação both at home and in the US.

Reuters noted the country’s leading state-controlled lender is fielding interest from investment peers hoping to snag a coveted spot as an underwriter on the listing slated to kick off in September.

The news provider added potential contenders such as Banco Santander Brasil and Morgan Stanley are going up against the likes of Credit Suisse and local players Itaú Unibanco and Banco Bradesco, among others.

At this kind of company valuation, the IPO in São Paulo and New York could easily be the largest in Brazil this year, Reuters suggested.

Zephyr, the M&A database published by Bureau van Dijk, shows it would also be the first listing by a domestic utility since 2013 when CPFL Energias Renováveis floated in a deal worth USD 459.61 million from a sale of new and existing stock.

However, when contacted by Reuters both Banco do Brasil and Previ, which own 9.4 per cent and 38.0 per cent stakes, respectively, declined to comment.

Neoenergia said "no decision has been taken yet on a potential IPO” when asked by the news provider, though the sources indicated it could come once industry regulators sign off on the power utility’s takeover of Elektro Eletricidade & Serviços.

Under terms of this merger, Spain’s Iberdrola will hold a 52.5 per cent stake in the new, combined entity, which will operate a power generation, transmission and distribution network covering 13.4 million consumers.

© Zephus Ltd