SAO PAULO, July 26 (Reuters) - Brazilian electric utility Copel said on Wednesday it has launched a billion-dollar share offering that will ultimately privatize the company serving the southern state of Parana.
The move will mark the second high-profile privatization of a power firm in Latin America's largest nation in about a year, after Brazil's federal government in June 2022 moved to dilute its stake in Eletrobras.
In a securities filing, Copel said the offering, which is set to be priced on Aug. 8, will initially total 549.17 million shares, but may end up increased by up to 15% depending on demand.
Considering its July 24 closing price, the utility added, the offering would total 4.96 billion reais ($1.05 billion) if the overallotment is fully sold.
Copel said it will initially issue 229.89 million new shares as part of the offering, while Parana will sell 319.28 million shares from its stake in the company. Those figures could eventually move up depending on the so-called hot issue.
Parana, which currently owns nearly 70% of Copel's voting capital, had announced its intention to turn it into a firm with dispersed ownership and no controlling shareholder in late 2022, after Governor Ratinho Junior was re-elected in a landslide victory.
Investment banks BTG Pactual, Bradesco BBI, Morgan Stanley and UBS Brasil are managing the offering. ($1 = 4.7383 reais) (Reporting by Gabriel Araujo; editing by Jonathan Oatis)
