Brazil’s Caixa Seguridade completed a secondary share offering valued at $216 million, priced at 14.75 reais per share. The deal, executed by Caixa Economica Federal, involved the sale of 82.38 million shares and marked the first offering in Brazil since October. The offering faced historical low activity due to high interest rates and investor caution.
A secondary share offering by Brazil’s Caixa Seguridade has been priced at 14.75 reais per share, detailed in a securities filing on Thursday. The total for this offering amounts to approximately 1.22 billion reais, which is equivalent to $216 million. This transaction was executed by Caixa Economica Federal, the controlling shareholder, and the set price reflects a 5.5% discount compared to Caixa Seguridade’s closing price on Wednesday.
In the transaction, a total of 82.38 million common shares of Caixa Seguridade were sold. Prominent financial institutions such as Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB managed the offering. Earlier in the month, Caixa Seguridade expressed intentions for the offering after receiving authorization from its controller, following extensive evaluations.
This event represents the first share offering in Brazil since October, when the energy company Eneva conducted a significant primary offering totaling 3.2 billion reais. The market for such deals had diminished significantly due to elevated interest rates and prevailing risk aversion. The pricing details were initially reported by local newspaper Valor Economico late on Wednesday.
(Reported figures: $1 = 5.6490 reais).
The secondary share offering of Caixa Seguridade highlights a significant transaction in Brazil’s financial landscape, enabling the firm to raise $216 million despite challenging market conditions. This offering, managed by top financial institutions, signifies a resurgence in share offerings in Brazil, providing optimism amidst high-interest rates. It underscores the strategic decisions taken by Caixa Seguridade and its controlling shareholder, Caixa Economica Federal, in navigating the current economic environment.
Original Source: www.insurancejournal.com
