The Brazilian electricity transmission and generation company, Alupar Investimento SA had raised nearly US$421 million in the first initial public offering in South America, It is the first utility to do so since the Lehman Brothers bankruptcy in 2008.
The Sao Paulo based Alupar was able to collate 851 million reais or US$421 million after selling 46 million units in the market. Each unit comprises one voting share and two preferred shares worth 18.5 reais each.
The price is at the lower end of its price range according to the website of the Brazilian securities regulator. The said Alupar units would be traded on the Sao Paulo trading floor starting April 24.
According to Alupar, 80% of the proceeds would be utilized to acquire new concessions as well as assets. The remaining 20% would be used to purchase existing transmission lines or power generating plants.
Banco Itau BBA SA would act as lead coordinator in the IPO. Banco Itau is the subsidiary of Itau Unibanco Holding SA, the largest South American bank in terms of market valuation.
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