Caixa Seguridade Succeeds in $216 Million Secondary Share Offering in Brazil
Caixa Seguridade announced a secondary share offering priced at 14.75 reais per share, totaling 1.22 billion reais ($216 million). This transaction was led by Caixa Economica Federal, marking Brazil’s first share offering since October amidst a challenging investment environment.
On Thursday, Brazilian insurance firm Caixa Seguridade announced a secondary share offering priced at 14.75 reais per share, amounting to approximately 1.22 billion reais, or $216 million. This endeavor was initiated by its principal shareholder, Caixa Economica Federal, and represented a 5.5% discount compared to the firm’s closing price on Wednesday.
The transaction involved the sale of 82.38 million common shares by Caixa Economica Federal and was coordinated by financial institutions including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. Earlier this month, Caixa Seguridade had formally filed for the offering after obtaining authorization from its controlling entity to proceed with this financial initiative.
This offering signifies the first share transaction in Brazil since October, when Eneva conducted a primary offering that raised 3.2 billion reais. The previous inactivity in the market had resulted from elevated interest rates and general risk aversion among investors. Local publication Valor Economico initially disclosed the pricing details late Wednesday.
Caixa Seguridade’s recent secondary share offering, amounting to $216 million, underscores the firm’s strategic initiatives amidst a challenging market environment. Managed by notable financial institutions, this offering marks a significant shift as it is the first of its kind in Brazil since last October, reflecting potential recovery in market activity following periods of muted interest.
Original Source: www.insurancejournal.com
