In search of a market value of r$18.00 billion, Neoenergia initiates investor education this week

Neoenergia will start next week the investor presentations – in market jargon, the "investor Education" – for its initial offer of shares (IPO). The company tries to Emscore in the IPO a market value of R $18.4 billion. This is where the company will hit the hammer over the price to try to empt its IPO. The intention is that the offer stay for the end of next month, schedule maintained, so far, even with the increase of volatility in the market. Rearview mirror. The history of Neoenergia's participation in several transmission auctions, and the fact that it entered the price war for the acquisition of Eletropaulo last year, are identified among potential investors as factors that must weigh in the evaluation of the company . However, sources close to the operation argue that the company is disciplined in its capital allocation, and exactly so it did not move forward in the fight for Eletropaulo when the price reached a higher level. In addition, participated in the auctions respecting the profitability of each asset. The evaluation, moreover, is that the fact that investors ask the company to carry out a primary offer, which is the one in which the money goes to the cashier, proves that there is trust in relation to the allocation of capital by the company. In the shoe. The market attention is also in the "re-IPO" of CPFL, or the relaunch of the company in the stock exchange, which must bring strong competition for the issuance of Neoenergia. The CPFL, of the Chinese State Grid, should launch its offer in early June, that is, before the competitor. In favour of CPFL is the fact that it is already listed, despite having little liquidity today, and only one controlling shareholder, unlike Neoenergia. Experience. When it attempted to open its capital in December 2017, Neoenergia was not flexible in the price desired for its IPO and the offer did not emplacou. At the time he weighed against the dispute he faced with two other offers, that of BR Distribuidora and that of Burger King, which had high demand in the market. Wanted, Banco do Brasil and Neoenergia did not comment.