The Brazilian unit of power company China Three Gorges Corp is expected to file this month for an initial public offering, aiming to raise $1 billion, three people with knowledge of the matter said on Friday.
CTG Brasil hired the investment banking units of Citigroup, Bank of America, Itau Unibanco Holding, Banco Bradesco SA and Banco BTG Pactual, the sources added, requesting anonymity to disclose private discussions. Citi will lead the syndicate, two of the sources said.
CTG, the world’s largest hydroelectric power generator, had an installed capacity of 8.28 gigawatts in Brazil in 2018, or nearly 8% of the country’s hydroelectric generation, it said on its website.
The company is expected to issue around $1 billion in new shares and receive all proceeds, the sources added.
There is a chance of CTG pricing the offering in December, making its IPO the only one on the Brazilian exchange B3 in 2022. An offering early next year is more likely, the three sources said.
CTG Brasil, Citigroup, Bradesco, Bank of America and BTG Pactual did not comment. The website of Brazilian newspaper Valor Economico reported the banks hired earlier on Friday.
Reuters