SAO PAULO, Oct 1 (Reuters) – Brazilian energy company Eneva launched on Tuesday a share offer to raise around 4.2 billion reais ($774 million), as flagged in July, to help fund power generation projects, natural gas exploration and possible M&A activity.
Eneva, one of the largest investors in Brazil’s natural gas sector, will first offer some 228.6 million shares, and depending on demand could increase that by about 71.4 million shares through an extra allotment.
The firm said its shareholder Partners Alpha has made an commitment to buy, if needed, all the shares except for the extra allotment, at 14 reais each.
With the offer, which is expected to be officially priced on Oct. 10, Eneva could raise as much as 4.2 billion reais, based on the 14 reais price per share and the sale of the additional allotment.
($1 = 5.4250 reais)
Reporting by Andre Romani in Sao Paulo; Editing by Tom Hogue and Sonali Paul