May 31, 2019 |
Brazilian energy company could raise $1.4bn to buy State Grid's stake in CPFL Renováveis
Brazil's CPFL Energia could earn as much as BRL5.57bn ($1.4bn) from an upcoming share sale in São Paulo and New York, according to a securities filing.
The Campinas-based energy company said it will sell at least 117m shares, including American depositary receipts (ADRs), plus as many as 40.9m additional shares. It added that it expects to price the shares between BRL29.30 and BRL35.30 apiece.
At the median price of BRL32.30 per share, CPFL Energia said it would earn BRL3.78bn from the follow-on offering, not counting the over-allotment option. The underwriters on the share sale are Itaú BBA, Santander, Bradesco, BTG Pactual and Morgan Stanley, CPFL Energia said.
Shares in CPFL Energia rose 1.85% after the announcement on Thursday to close at BRL30.30 on the B3 stock exchange in São Paulo. The company's ADRs climbed 2.43% to $15.19.