Caixa Seguridade has successfully priced a secondary share offering at 14.75 reais per share, totaling approximately 1.22 billion reais ($216 million). The transaction involved the sale of 82.38 million shares by its controlling shareholder, Caixa Economica Federal, and marks the first share offering in Brazil since October 2022.
On Thursday, Brazilian insurance firm Caixa Seguridade announced a secondary share offering priced at 14.75 reais per share, amounting to a total of approximately 1.22 billion reais ($216 million). This offering was conducted by its controlling stakeholder, Caixa Economica Federal, and the share price reflected a 5.5% discount based on Caixa Seguridade’s closing price from the previous day.
Caixa Economica Federal sold 82.38 million common shares of Caixa Seguridade as part of this transaction, which was executed with the assistance of financial institutions such as Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. The share offering was submitted for approval earlier in the month, with the company receiving authorization from its controller after extensive preparatory studies.
This event represents the first share offering in Brazil since October 2022, when energy company Eneva raised 3.2 billion reais through a primary offering amidst a climate of high interest rates and risk aversion. The pricing details were first disclosed by the local publication Valor Economico.
Caixa Seguridade’s recent secondary share offering, priced at a significant discount, indicates a strategic move by Caixa Economica Federal amidst challenging market conditions. This offering stands as a notable financial event in Brazil, especially following a prolonged absence of similar transactions due to prevailing economic uncertainties. It underscores the careful navigation of investment opportunities, reflecting both regulatory support and market resilience.
Original Source: www.insurancejournal.com
