CPFL Energia SA (CPFE3), Brazil’s second-biggest power utility by market capitalization, rose to a one-week high after its renewable energy unit filed a request with the regulator to sell shares in an initial public offering.
CPFL gained 2.4 percent to 20.49 reais at 11:35 a.m. in Sao Paulo, the highest intraday price since June 19. The benchmark Ibovespa rose 1.8 percent.
The utility holds a 63 percent stake in Sao Paulo-based CPFL Energias Renovaveis SA (CPRE3), which runs 35 hydroelectric plants, 15 wind farms and 18 biomass plants in Brazil, according to information posted on the subsidiary’s website. The unit plans to raise as much as 1.46 billion reais ($670 million), according to a regulatory filing today.
The shares are scheduled to be priced on July 17 and debut on the Brazilian exchange on July 19, CPFL Renovaveis said in the filing. They will be listed in BM&FBovespa’s Novo Mercado section, where only voting shares can trade and at least 25 percent of a company’s stock must be available for trading.
Six companies have sold shares in initial offerings in Brazil in 2013. Votorantim Cimentos SA (VEBM:US), a Sao Paulo-based cement maker, suspended its sale of as much as 7 billion reais of shares planned for last week because of a plunge this year in Brazilian stocks. The Ibovespa benchmark equity gauge has fallen 21 percent this year.
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