Caixa Seguridade has completed a secondary share offering valued at $216 million, priced at 14.75 reais per share. Conducted by its controlling shareholder, Caixa Economica Federal, this transaction signifies the first share offering in Brazil since October. The current financial landscape, marked by high interest rates, has limited similar offerings recently.
Brazilian insurance company 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 information was disclosed in a securities filing on Thursday. The offer was executed by Caixa Economica Federal, the company’s controlling shareholder, reflecting a 5.5% discount relative to Caixa Seguridade’s closing price on Wednesday.
The transaction entailed the sale of 82.38 million common shares of Caixa Seguridade. The offering was facilitated by notable financial institutions, including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. Earlier in the month, Caixa Seguridade had submitted an application for this offering, which followed authorization from its controller after extensive analyses conducted in late 2024.
This offering represents the first such event in Brazil since October, when Eneva raised 3.2 billion reais through a primary offering. Share offerings have been limited recently due to elevated interest rates and heightened risk aversion among investors. The pricing details were initially reported by local media outlet Valor Economico late Wednesday.
In summary, Caixa Seguridade’s secondary share offering of 1.22 billion reais is a significant development in Brazil’s financial market, marking the first such offering since October. The sale was conducted by Caixa Economica Federal and reflects the current challenges in the market due to high interest rates and risk aversion. It highlights a step towards revitalizing share offerings within the Brazilian economy.
Original Source: www.insurancejournal.com
