Brazilian reinsurance firm IRB Brasil Re has announced a secondary share offering that is expected to raise around 2.5 billion reais ($673.27 million).
The company has now confirmed reports from sources at Reuters earlier this month, who said that a government fund managed by state-run bank Caixa Economica Federal was preparing to sell its 8.9% stake in IRB.
The share offering would follow on from IRB’s initial public offering (IPO) in 2017, which allowed the reinsurer’s existing shareholders to offload a portion of their stake in order to raise capital and bring new investors onboard as the firm looked to expand.
The IPO pricing put shares at 27.24 reais ($8.64) and raised just over 2 billion reais ($540 million), with around 73.5 million shares sold by IRB Brasil Re’s major holders.
A new security filing shows that Caixa will now sell its 27,656,408 common shares in IRB, with pricing expected to occur on February 26, 2019.
IRB also revealed that the investment banking units of Caixa Econômica Federal, Bank of America Merrill Lynch, Banco Bradesco SA, Itaú Unibanco Holding SA and Banco do Brasil SA will manage the offering.
