Caixa Seguridade completed a secondary share offering at 14.75 reais per share, raising about 1.22 billion reais ($216 million). The offering was led by Caixa Economica Federal, coordinating with major financial institutions. This marks Brazil’s first share offering since October, indicating potential market shifts amidst high interest rates.
Brazilian insurance firm Caixa Seguridade executed a secondary share offering, priced at 14.75 reais per share, totaling approximately 1.22 billion reais ($216 million). This initiative was announced in a securities filing on Thursday and was initiated by Caixa Economica Federal, its controlling shareholder, representing a discount of 5.5% relative to the previous day’s closing price.
As part of the transaction, Caixa Economica Federal divested 82.38 million common shares of Caixa Seguridade. The offering was managed by prominent financial institutions including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. This crucial step follows an earlier filing and the authorization to proceed with the offering granted by the firm’s controller in late 2024 after extensive evaluation.
Significantly, this offering marks Brazil’s first share issue since October, contextualized by a prior primary offering from energy company Eneva, which raised 3.2 billion reais. Share offerings have been scarce in Brazil due to elevated interest rates and heightened risk aversion in the market. The pricing details were first reported by local newspaper Valor Economico late Wednesday.
In summary, the secondary share offering by Caixa Seguridade, facilitated by its controlling shareholder Caixa Economica Federal, represents a significant financial maneuver amidst a challenging economic landscape in Brazil. This initiative not only demonstrates the firm’s proactive approach following market analysis but also indicates a potential resurgence in share offerings in Brazil after a period of relative inactivity due to high interest rates.
Original Source: www.insurancejournal.com
