Eletrobras announces privatization and launches initial offering of 627,6 million shares for the company

The Eletrobras privatization process should move around 30 billion reais for the company just based on the initial share offering sent to the Securities and Exchange Commission.

According to a document sent to the Securities and Exchange Commission, the CVM, last Friday (27/05), Eletrobras officially published the notice of public offering of shares of companhia. This step marks the privatization process of Eletrobras that had already been speculated for some time. The total primary offering of new shares is estimated at 627,6 million shares.

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Although the primary offering of privatization shares is closed, the company should move a much higher value

According to an estimate by Eletrobras itself, the expectation is that the operation, in total, will move around 30,6 billion reais, a value higher than what was previously speculated.

In addition, regarding the number of shares in the initial offering, closed at more than 600 million, Eletrobras reinforced that it is not fixed and can change in the face of circumstances. For the time being, it was announced that the initial offering may be increased by an additional lot of up to 15% of the total shares, preparing possible investors who are interested in the privatization process and are still feeling insecure about the whole procedure.

For this part of the public, it is also important to pay attention to the stock booking period that starts on the 3rd of June and runs until the 8th of the same month, remembering that 07/06 will be specific to the priority booking.

Other important dates surrounding the privatization process of Eletrobras is the 09/06th, because that is when the process of collecting investment intentions will take place, also known as bookbuilding, when the specific value per share will be specified, as per notice transferred from Eletrobras to CVM; June 13th also deserves attention, as it marks the effective start of negotiations for the shares in the offer, as previously stipulated. Those interested must dispute who is able to comply with the minimum established by the company and whoever has the greatest capacity wins.

There are still several stages to complete the privatization of Eletrobras after the disclosure of the company's initial share offering

After the official announcement of the primary offering of new shares, estimated at 627,6 million shares, and the calendar in which the main steps of the purchase and sale process will take place, the moment known in the market as the roadshow will arrive. This is where investors will get to know Eletrobras better and understand how the company works from a socioeconomic perspective and decide, based on that, whether the investment is worthwhile for them.

For Eletrobras itself the roadshow It is also a great moment, as there is a long process of collecting investment intentions based on who is really interested in the privatization proposal. It is only based on this that the final value per share of the offer initially presented can be effectively closed and presented to investors, in addition to the corporate body of Eletrobras itself.

This is where the previously mentioned estimate comes from, that the privatization process should move around 30 billion reais, but it all depends on how the roadshow it will work for the company.

To prepare the time for Eletrobras' presentation to potential investors, a financial assessment of the company's performance in the first quarter of 2022 was also made. Based on numerical data, it is easier for the public who understands economics to know if it is worth or not to enter the dispute for the shares mentioned in the company's offer.