(Bloomberg) -- Utility Companhia Paranaense de Energia is set to be privatized as its controlling holder, the Brazilian state of Parana, is shedding its stake in an equity offering that raised 5.2 billion reais ($1.1 billion), according to people familiar with the matter.
Copel — as the company is known — and the state government are selling a combined 549,171,000 common shares at 8.25 reais a piece, the people said, asking not to be named because the information isn’t public yet. That brings the state share of the company’s voting stock to below 50%, down from 70% prior to the sale.
An additional allotment of 82,375,650 shares is also being fully sold at the same price, one of the people said.
Copel didn’t immediately reply to requests seeking comment outside business hours.
The share offering had drawn early interest from investors including GQG Partners LLC and Zimmer Partners, people familiar said earlier this month. Banks running the deal were Banco BTG Pactual SA, Banco Itau BBA SA, Banco Bradesco BBI SA, Morgan Stanley and UBS BB Investment Bank.
The transaction ranks as one of Brazil’s largest equity deals so far this year, and adds to a recent wave of privatizations. Last year, Eletrobras — Latin America’s biggest utility — was sold in a blockbuster deal, while the Sao Paulo state recently unveiled the broad guidelines of a potential privatization of water utility Sabesp.
Preferred shares of Copel are up 9.2% since the beginning of the year, outperforming the benchmark Ibovespa equity index. The stock is trading near all-time highs.
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