Brazil’s state-owned energy firm Eletrobras has moved forward with its privatization process by filing a securities offering with capital market regulators in Brazil and the U.S.
The company will offer 627.6 million new shares and a secondary offering of 69.8 million shares that currently belong to the Brazilian government. The tranche of new shares will be offered as American Depositary Receipts, in an attempt to cater to foreign investors.
Eletrobras will set the price of these shares by June 9, 2022. Market agents estimate the offer will raise BRL 30 billion (USD 6.33 billion). The process comes as corporate governance practices in Brazil are in the public spotlight, following several interferences of the Jair Bolsonaro administration in state-owned enterprises.
The latest of such was the dismissal of oil firm Petrobras’s CEO after a mere 40 days in office, without consulting the company’s board of directors or minority shareholders.