CPFL Energia outlines share sale

CPFL Energia outlines share sale

Equity Capital Markets M&A Energy Electricity Brazil China US

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.

CPFL Energia said it will use the money to buy the stake in its renewable energy division owned by its parent company, China's state-owned utility State Grid, for BRL4.11bn.



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