Caixa Seguridade executed a $216 million secondary share offering at 14.75 reais per share, managed by Caixa Economica Federal and major banks. This is the first offering in Brazil since last October, indicating potential market recovery amid previous investment hesitancies.
Brazil’s Caixa Seguridade registered a secondary share offering priced at 14.75 reais per share, totaling approximately 1.22 billion reais or $216 million. This transaction was facilitated by its main shareholder, Caixa Economica Federal, at a 5.5% discount compared to the previous day’s share price.
The deal involved the sale of 82.38 million common shares and was coordinated by financial institutions including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. This offering follows the approval from Caixa Seguridade’s controller earlier this month, which marked the firm’s return to the market after extensive analysis.
This offering is significant as it represents the first share issuance in Brazil since October, when Eneva raised 3.2 billion reais through a primary offering. Previously, the market for such transactions had slowed due to high interest rates and increased risk aversion among investors. According to Valor Economico, the pricing details were shared on Wednesday evening.
The exchange rate for this transaction stands at $1 equaling 5.6490 reais, highlighting the ongoing economic conditions in Brazil that influence financial operations and share offerings in the market.
In summary, Caixa Seguridade’s secondary share offering of $216 million, priced at a discount, signifies a notable activity in Brazil’s financial landscape. The successful execution of this deal, authorized by its state-run parent company, may encourage more share offerings in a market previously hindered by economic uncertainties. This move may also hint at a revival in investment opportunities as conditions improve.
Original Source: www.insurancejournal.com
