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Brazil’s Neoenergia files for IPO

Sep 5, 2017

The Brazilian power utility eyes a dual-listing in New York and Brazil and Banco do Brasil and Credit Suisse will lead the equity offering, according to a securities filing

Aaron Weinman

Keywords: Neoenergia Iberdrola Spain Brazil power utility equity capital markets

Neoenergia has advanced plans to go public, filing initial documentation for a potential dual-listed IPO in New York and Brazil.


The Rio de Janeiro-based utility picked Banco do Brasil and Credit Suisse to lead the equity offering, according to a securities filing. Other banks are said to be vying for the mandate, including Itau BBA, Morgan Stanley and Santander Brasil.


Spain’s Iberdrola, which holds a 52% stake in Neoenergia, along with other shareholders seek to jump on the momentum still travelling through Brazil’s ECM space. A number of equity offerings are due to price this month, all looking to jump on the high inflows into Brazilian stocks.


In a filing, Neoenergia’s shareholders said it had approved tripling its capital limit to BRL12.83bn ($4bn) from roughly BRL3.5bn.


In June, Neoenergia shareholders agreed to merge with Iberdrola’s Elektro, creating the largest utility in Brazil.


The merger lifted Iberdrola’s stock in Neoenergia to 52% from 39%. Previ, the pension fund for Banco do Brasil employees holds 38% of the utility and Banco do Brasil the rest.



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