Eletrobras Announces Privatization and Launches Initial Offering of 627.6 Million Shares By The Company

The Privatization Process of Eletrobras Is Expected to Mobilize Around 30 Billion Reais for the Company Based Solely on the Initial Share Offering Submitted to the Securities and Exchange Commission.

According to a document sent to the Securities and Exchange Commission, CVM, last Friday (05/27), Eletrobras officially published the public share offering notice of the company. This step marks the privatization process of Eletrobras that has been speculated for a while. The primary offer of new shares is estimated to total 627.6 million shares.

Despite the Primary Share Offering of the Privatization Being Closed, the Company Is Expected to Mobilize a Much Higher Amount

According to estimates from Eletrobras itself, the expectation is that the operation will mobilize around 30.6 billion reais in total, an amount higher than previously speculated.

Moreover, regarding the number of shares in the initial offer, closed at over 600 million, Eletrobras emphasized that it is not fixed and can indeed change based on circumstances. For now, it has been noted that the initial offering may be increased by a supplemental lot of up to 15% of the total shares, preparing potential investors who are interested in the privatization process and may still feel uncertain about the entire procedure.

For this segment of the public, it is important to pay attention to the share reservation period, which begins on June 3 and runs until June 8, noting that June 7 will be specific for priority reservations.

Other important dates surrounding the privatization process of Eletrobras include June 9, as this is when the intention-to-invest collection process, also known as bookbuilding, will take place, specifying the precise value per share, according to a notice sent by Eletrobras to the CVM; June 13 also deserves attention, as it marks the effective start of negotiations for the shares of the offering, as previously stipulated. Interested parties must compete to meet the minimum established by the company, benefiting those with greater capacity.

There Are Still Several Steps Before the Conclusion of Eletrobras Privatization After the Disclosure of the Company’s Initial Share Offering

After the official announcement of the primary offer of new shares, estimated at 627.6 million shares, and the calendar for the main steps of the buying and selling process, the moment known in the market as roadshow will arrive. It is during this event that investors will get to know Eletrobras better and understand how the company operates from a socioeconomic perspective, deciding based on that whether the investment is worth it for them.

For Eletrobras itself, the roadshow is also a significant moment, as it involves a long process of collecting investment intentions based on who is truly interested in the privatization proposal. It is only from this point that the final price per share of the initially presented offering can be effectively determined and presented to investors, in addition to the corporate body of Eletrobras itself.

This is where the previously mentioned estimate that the privatization process is expected to mobilize about 30 billion reais comes from, but everything depends on how the roadshow will function for the company.

To prepare for the moment of presenting Eletrobras to potential investors, a financial assessment of the company’s performance in the first quarter of 2022 was also conducted. Based on the numerical data, it becomes easier for the audience familiar with economics to determine whether it is worthwhile to enter the competition for the shares mentioned in the company’s offering.