Omega Geração SA, a Brazilian renewable energy firm, and shareholders expect to raise between 1.7 billion reais and 2 billion reais ($517 million and $608.25 million) in an initial public offering that could price as early as next month, a person with knowledge of the plan said on Wednesday.
U.S. private equity firm Warburg Pincus LLC [WP.UL] and Brazilian buyout firm Tarpon Investimentos SA (TRPN3.SA) are among Omega’s shareholders that filed a regulatory request to list the company last month.
The IPO will have a primary portion in which Omega will offer new stock, and a secondary portion through which shareholders will sell part of their participation in the utility, said the person, who requested anonymity because the plan remains private.
Omega plans to sell an undefined number of units, a blend of one common share and two preferred shares, at the offering, the person added. Omega’s press representatives declined to comment.
The company’s IPO would be the first for any Brazilian power firm in four years, underscoring the extent to which the image of a sector long marred by erratic policy moves and a deep recession has changed in recent months. Three follow-on offerings since July have raised power utilities about 3.6 billion reais, Thomson Reuters deals intelligence data showed.
An index grouping power utilities .IEE trading on the São Paulo Stock Exchange has gained 26 percent over the past year.
This year has been the busiest for local offerings since 2013, partly because of President Michel Temer’s ability to push ahead with ambitious reforms to lower the country’s risk perception. But recent corruption allegations against Temer have put his plans at risk, casting doubts over future bond and stock sales.
Omega hired the investment-banking units of Grupo BTG Pactual SA, Bank of America Corp, Banco Bradesco SA, Itaú Unibanco Holding SA and XP Investimentos SA to underwrite the offering.