Brazil’s Neoenergia files for IPO

Brazil’s Neoenergia files for IPO

Project & Infrastructure Finance Brazil Equity M&A

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.