Brazilian government to increase stake in energy giant
Petrobras is set to conduct the largest ever share issue – worth approximately $70 bn – after it set the price for its rights issue.
In a statement, Petrobras says it will sell 2.3 bn common shares at R$29.65 ($17.20) per share and 1.8 bn preferred shares at R$26.30 per share.
Investor demand for the shares appears to be high as the price is higher than the market had predicted. Petrobras is selling its new common shares at only a small discount to the current market price, which stood at just over R$30 a share on Thursday.
The issue involves an oil-for-shares swap with the Brazilian government that will see Petrobras given the right to produce five billion barrels of offshore oil.
As a result of the offering, the government’s stake in Petrobras will rise above the existing level of 40 percent, although this factor does not appear to have deterred investors from taking part in the sale.
