Caixa Economica Federal, a Brazil-based state owned bank, is planning to divest as much as 25% stake of its insurance subsidiary through an initial public offering (IPO).
A source familiar with the development was quoted by the Wall Street Journal (WSJ) as saying that the proposed IPO could fetch approximately BRL11.25bn ($5bn).
Go deeper with GlobalData
The IPO, which is expected to be organized by the end of this year, is part ot the bank’s plan to assist the government improve its fiscal situation.
Fully controlled by Brazil’s federal government, Caixa formed a holding company known as Caixa Seguridade Participacoes earlier this month. The new company will control certain insurance operations of the bank and be the subject of the IPO.
The bank has reportedly appointed BB Investimentos, Itau BBA, Bradesco BBI, Goldman Sachs, UBS, BTG Pactual, Bank of America Merrill Lynch and Brasil Plural to manage the operation.
Brazil’s Finance Minister Joaquim Levy was quoted by the publication as saying that the plan to sell a stake in Caixa Seguridade is in an advanced stage.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
