Caixa Seguridade Announces Secondary Share Offering Worth 1.32 Billion Reais

Caixa Seguridade has announced a secondary share offering of 82.5 million shares, controlled by Caixa Economica Federal. This move was expected, authorized in late 2022. The total value is estimated at 1.32 billion reais. The share offering will be priced on March 19, with notable financial institutions managing the transaction.

Caixa Seguridade, Brazil’s state-run insurance company, announced a secondary share offering late on a recent Sunday. The offering will involve a secondary sale of stock that is controlled by Caixa Economica Federal, which holds over 80% of Caixa Seguridade. This development had been anticipated since Caixa Economica authorized the move in late 2022 following extensive evaluations.

The company indicated in a filing that the offering will consist of 82.5 million common shares. Based on the closing share price of 15.99 reais on the preceding Friday, the total valuation is approximately 1.32 billion reais, equating to $227.94 million. The pricing of this offering is scheduled for March 19.

The transaction is being coordinated by prominent financial institutions, including Itau BBA, Caixa Economica Federal, BTG Pactual, Bank of America, and UBS BB, ensuring a robust management team for the offering.

In conclusion, Caixa Seguridade’s planned secondary share offering is a significant development, reflecting the anticipated transition authorized by its controlling shareholder, Caixa Economica Federal. With 82.5 million shares on offer and a projected total value of around 1.32 billion reais, this transaction highlights the ongoing financial activities within Brazil’s insurance sector. The involvement of major financial institutions further underscores the offering’s importance.

Original Source: www.tradingview.com