Caixa Seguridade’s secondary share offering amounted to $216 million, priced at 14.75 reais per share. Authorized by Caixa Economica Federal, it involved the sale of 82.38 million shares and marked Brazil’s first offering since October 2022. This development reflects a potential recovery in the equity market amid economic challenges.
On March 20, 2023, Brazil’s Caixa Seguridade announced a secondary share offering valued at approximately 1.22 billion reais (equivalent to $216 million). The shares were priced at 14.75 reais each, reflecting a 5.5% discount compared to the closing price from the preceding day. The transaction was executed by the firm’s controlling shareholder, Caixa Economica Federal, which sold 82.38 million common shares of Caixa Seguridade.
The offering was facilitated by renowned financial institutions including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. This share offering followed prior authorization from Caixa Seguridade’s controller, which was announced in late 2024 after extensive evaluations. The transaction constitutes the first share issuance in Brazil since October 2022 when Eneva secured 3.2 billion reais in a primary offering, as such financial activities had decreased due to high interest rates and a general aversion to risk.
Valor Economico, a local newspaper, initially reported the pricing details late on the preceding Wednesday. The share offering signifies a significant development in Brazil’s capital markets, suggesting a potential revitalization of investor engagement after a prolonged period of inactivity.
The secondary share offering of Caixa Seguridade, totaling about $216 million, highlights a notable return to activity in Brazil’s equity markets following a lull due to economic uncertainties. The transaction, facilitated by Caixa Economica Federal and leading investment banks, not only underscores investor confidence but also sets a precedent for future offerings in a climate of rising interest rates.
Original Source: www.marketscreener.com
