En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Petrobras eyes up to $6.8 bln valuation in BR distribudora IPO

 

By Reuters Staff

SAO PAULO
Petroleumworld 11 23 2017

Brazilian state-controlled company Petróleo Brasileiro SA will seek a valuation of up to 22 billion reais ($6.8 billion) for its fuel distribution unit in what is expected to be the country's biggest initial public offering of the year.

Petrobras, as the company is known, will offer a 25 percent stake in its BR Distribuidora SA unit in an IPO set to price on Dec. 13, according to a regulatory filing.

The offering could grow to a 33.75 percent stake in the distribution unit if the company sells all additional and supplementary allotments.

At the high end of a suggested price range of 15 reais to 19 reais per share, Petrobras would fetch as much as 7.5 billion reais with the offering, a key part of its plan to sell assets and reduce the biggest debt load among major oil companies.

The local investment banking unit of Citigroup Inc will act as lead underwriter. Bank of America Corp, Banco do Brasil SA, Banco Bradesco SA, Banco Itaú BBA SA, JPMorgan Chase & Co, Morgan Stanley and Santander Brasil SA will also underwrite the transaction.

The long-awaited BR Distribuidora IPO would cap a revival in equity listings in Latin America's largest economy, where the benchmark stock index hit a record high last month.

Renewed demand for emerging market assets, investor confidence in President Michel Temer's efforts to balance the budget and a nascent economic recovery have fostered demand for Brazilian assets following the deepest recession in a century.

The BR Distribuidora IPO is one of several expected to close in the final weeks of 2017 as companies rush to avoid expected market volatility ahead of a wide-open presidential campaign next year.

In August, Petrobras injected 6.3 billion reais of fresh capital into BR Distribuidora in a bid to clean up its balance sheet and attract investors. The move solved a long-standing dispute with state-controlled power utility Centrais Elétricas Brasileiras SA, which had been the biggest hurdle for an IPO.

Last month, Petrobras announced that BR Distribuidora swung to a profit of 620 million reais in the first nine months of the year, compared to a loss of 367 million reais in the same period of 2016.

$1 = 3.26 reais



Reporting by Bruno Federowski and Luciano Costa; Writing by Bruno Federowski from Reuters.

reuters.com 11 22 2017

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.