Rio de Janeiro – The Brazilian state-owned oil company Petrobras submitted a public offering bid to the Securities and Exchange Commission (CVM, in the Portuguese acronym) on this Friday (3rd) for primary issuance of 2.174 billion new common shares and 1.585 billion new preferred ones. The aim is to finance the company’s investment plan. The public offering will be held simultaneously in Brazil and abroad, as approved at Petrobras’ Board of Managers meeting held last Wednesday (1st).
In the Market Notice forwarded to the CVM, Petrobras informs that the initial offering may be expanded through an additional batch of 10% of the common or preferred shares and another complementary batch of 5%. The book building procedure (collection of investment intentions) will continue until September 23rd.
Three offerings will be made: the priority offering, geared towards shareholders, during which up to 80% of the initial amount of common and preferred stock will be issued. Mutual privatization funds may take part in the priority offering, which enables shareholders in these funds to make purchases using the capital in their Government Severance Indemnity Fund (FGTS), as long as they do not exceed 30% of the amount in the account.
The second offering will be the retail offering, targeting Petrobras employees, which will have preference in the issuance, and natural persons. The minimum investment in this offering will be 1,000 Brazilian reals (US$ 575.8) and the maximum will be 300,000 reals (US$ 172,700).
The third offering will be geared towards institutional investors, a group that comprises legal entities, financial institutions and investment clubs in Brazil and abroad. According to the Market Notice, this offering will include the remaining shares, up to a limit of 10% of the original offering, with investment starting at 300,000 reals (US$ 172,700).
*Translated by Gabriel Pomerancblum
