Caixa Seguridade Successfully Completes $216 Million Share Offering

A secondary share offering for Caixa Seguridade was priced at 14.75 reais per share, totaling about 1.22 billion reais ($216 million). Managed by leading banks, the offering was made by the controlling shareholder Caixa Economica Federal. This marks the first offering in Brazil since October 2022, amid a climate of high interest rates and risk aversion.

On March 20, 2023, a secondary share offering for Caixa Seguridade, a Brazilian insurance company, was announced. The shares were priced at 14.75 reais each, culminating in a transaction valued at approximately 1.22 billion reais, equivalent to $216 million. The offering was executed by Caixa Economica Federal, the company’s controlling shareholder, reflecting a 5.5% discount from the previous day’s closing price.

In this transaction, Caixa Economica Federal divested 82.38 million common shares of Caixa Seguridade. The offering was orchestrated by renowned financial institutions, including Itau BBA, Caixa, BTG Pactual, Bank of America, and UBS BB. Earlier this month, Caixa Seguridade filed for this offering after receiving authorization from its controller, following extensive evaluation over the preceding months.

This share offering marks a significant event, being the first in Brazil since October of the previous year, when Eneva, an energy company, successfully raised 3.2 billion reais through a primary offering. The market for such offerings had encountered a slowdown due to elevated interest rates and prevailing risk aversion among investors. The pricing details were first reported by local media outlet Valor Economico.

The secondary share offering by Caixa Seguridade, priced at 14.75 reais per share and amounting to approximately $216 million, concluded successfully, showcasing a rebound in the Brazilian share market. This transaction, managed by several prominent institutions, also highlights the resurgence of share offerings in Brazil amidst challenging economic conditions. The insights provided by the transaction could signify a turning point for investor sentiment in the region.

Original Source: www.marketscreener.com