Brazilian state bank Caixa Economica Federal is reportedly set to raise approximately $917m by divesting part of its stake in IPO of insurance holding Caixa Seguridade.

Citing two people familiar with the development, Reuters reported that the bank has priced the insurance arm’s IPO at $1.79 (BRL9.67) per share.

The report added that the state-owned bank may sell 517.5 million shares of the insurance business in IPO, considering an additional allotment.

The IPO, which is first IPO by a Brazilian state-controlled firm under President Jair Bolsonaro’s government, had been deferred due to the outbreak of the Covid-19 pandemic.

The investment banking units of Morgan Stanley, Caixa Economica Federal, Bank of America, Credit Suisse, Itau Unibanco and UBS BB have been hired to manage the offering.

Indian insurance aggregator Policybazaar is reportedly also prepping up to file a draft prospectus for an IPO in May this year.

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The Mumbai IPO could rake in nearly $500m, reported Bloomberg citing people familiar with the issue.

The offering could value the aggregator at more than $3.5bn, with plans on to go public before the end of 2021.

In September 2019, French insurer CNP Assurances signed a $1.7bn bancassurance pact with Caixa Economica Federal.