Neoenergia, a subsidiary of Iberdrola, marked a new milestone in the group’s history when it began trading in the Novo Mercado segment of the São Paulo B3 stock market (formerly Bovespa). This is the largest initial public offering (IPO) so far this year and the most relevant in Brazil’s energy sector since 2000.
With a market capitalization of about R$19 billion, Neoenergia becomes the main private electricity utility, active in the networks business, listed on the Novo Mercado.
The value of the offer amounted to R$3.255 billion after the sale of 208,044,383 Neoenergia shares, representing 17.139% of its share capital, and after the final price was set at 15.65 Brazilian reais per share.
Neoenergia will continue
to play an important role in Brazil’s economic and social development
in the coming years, responding to the growing demand for sustainable
and reliable energy and generating wealth in the country, where it is
present in 18 states and serves 34 million customers. The Iberdrola
group, through its Brazilian subsidiary, plans to invest €6 billion in
Brazil during the 2018-2022 period, as stated in its Strategic Outlook,
presented in London in February.
Neoenergia's new share capital structure
the success of the offer, the resulting share capital of Neoenergia is
structured as follows: Iberdrola controls 50% + 1 share, Previ, with
32.9%, continues as a relevant, long-term shareholder, and the remaining
17.139%, being free float.
Brazil's energy leader
Through Neoenergia, Iberdrola has become one of the two largest electricity companies in Brazil by number of customers, with 13.9 million supply points. The company focuses its activity on the generation, transmission, distribution and retail of electricity, in an area spanning 835,000 km2.
Today, the company has a production capacity in the country of more than 3,700 megawatts (MW), of which almost 88% are renewables. If projects under construction are taken into account, capacity reaches 4,550 MW. Standing out among Iberdrola’s clean generation facilities in Brazil, is the recently inaugurated hydroelectric plant of Baixo Iguaçu, with 350 MW output capacity.
In addition, the group has more than 600,000 kilometers of electric lines, operated by the four distribution companies integrated in Neoenergia: Cosern, Celpe, Coelba and Elektro.