Caixa Seguridade launched a secondary share offering at 14.75 reais per share, amounting to 1.22 billion reais ($216 million). The sale was orchestrated by its controlling shareholder, Caixa Economica Federal, and involved 82.38 million shares. This offering is the first in Brazil since October, indicating a renewed interest in share issuance amidst changing economic conditions.
On March 20, 2023, Brazilian insurance firm Caixa Seguridade announced a secondary share offering priced at 14.75 reais per share. This offering, totaling approximately 1.22 billion reais (or $216 million), was detailed in a securities filing.
The offering was executed by Caixa Economica Federal, the controlling shareholder and a state-run bank, at a 5.5% discount compared to the company’s closing price the previous day. A total of 82.38 million common shares were sold in this transaction.
The deal was facilitated by a consortium of financial institutions, including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. Earlier in March, Caixa Seguridade had announced the intention to proceed with the offering, which followed a period of study and preparation authorized by its controlling entity. This marks the first share issuance in Brazil since last October, indicating a return of activity in the equity markets amidst previous high-interest-rate conditions that stifled such offerings.
Caixa Seguridade’s secondary share offering represents a significant transaction in the Brazilian financial market, totaling 1.22 billion reais ($216 million) and signalling a resumption of share offerings among Brazilian firms. Managed by a group of established financial institutions, this deal illustrates a possible shift in market conditions, encouraging companies to seek equity financing once again after a prolonged hiatus due to economic uncertainties.
Original Source: www.marketscreener.com
