2023-08-09 10:53:12 ET
Utility Companhia Paranaense de Energia ( NYSE: ELP ) +1.3% Wednesday as the utility company is being privatized Wednesday as its controlling holder, Brazil's Parana state, sold its stake through an equity offering totaling 5.2B reais (~$1.1B).
Copel ( ELP ) and the Parana state sold more than 549K common shares at 8.25 reais each, the company said in a Brazilian regulatory filing, lowering Parana's stake on Copel's voting stock to below 50%, down from 70% before the sale.
An additional allotment of more than 82M shares reportedly also was fully sold at the same price, bringing the total amount raised to 5.2B reais.
Copel ( ELP ) "has been undergoing a turnaround process for at least four years now," Citi analyst Antonio Junqueira wrote. "This ongoing process should become easier with the company now becoming a private sector entity."
More on Copel:
- Financial and valuation comparison to sector peers
- Analysis: Copel: Hold Until The State No Longer Owns It And Receive Dividends Meanwhile
- Stock price return: Up 30% YTD, up 27% in the past 12 months
For further details see:
Brazil state selling control of utility Copel in $1.1B equity offering