The actions of electrobras are among the main declines in the Ibovespa this Friday (10th), one day after the state-owned company announced the priced value of the primary and secondary offerings, to complete its capitalization process.
At around 11:11 am, the common share (ELET3) dropped 4%, quoted at R$ 41.32. Class B preferred shares (ELET6) fell by 4.89% to R$40.42.
Heitor Martins, specialist in Variable Income at Nexgen Capital, says that the drop involves a natural adjustment due to the difference between the defined price of R$42 and the closing price in the previous session, of R$43.
However, he believes that the decline is mainly driven by the negative flow in the market as a whole in this session, after the release of inflation United States in May, above expectations.
“There is no bad view about the company, so the main factor is more flow and the market trying to adjust to yesterday’s price and trying to find a price in the short term that fits what was priced”, he says.
Flavio Conde, an equity analyst at Levante Investimentos, says that the problem is not the company itself, but the market, which is in a “very bad time, which should lead to further falls due to high interest rates around the world” , and therefore unfavorable for stocks on the stock exchange.
“The share has already risen 40% with the Ibovespa rising 6% this year, half of the valuation with privatization was already priced in. It would be worth R$ 60 privatizing, but only after the new controllers do a lot of things in the company for a few years. The market anticipated some of this, but the scenario is now difficult,” he points out.
He assesses that it would not be the first time that a stock has fallen despite the high expectations surrounding a large operation carried out by the company, citing as examples the initial public offerings (IPOs ) of Nubank and Raízen.
“Often, there is over-pricing based on projections that make assets more expensive than they should be, and then result in declines,” he says.
Alexandre Kogake, an analyst at Eleven Financial, says that pricing below the closing value “happens in most offers, as there is a discount for those who enter the offer”.
He also associates the drop with the performance of the market as a whole in this session, but highlights that, apparently, some institutional investors were not interested in the value of R$ 42 per share.
From origin to privatization: understand the history of Eletrobras
Published last Thursday, the priced value for Eletrobras shares was R$ 42. The minimum price established by the federal government for the shares was kept confidential, but according to the material fact disclosed by the company, the pricing reached a value equal to or greater than the minimum determined.
According to the document, the fixed price per share involves a total amount of R$29.29 billion, up from R$22.05 billion if the minimum price had been followed. Considering the supplementary lot that will be offered, the total reaches R$ 33 billion.
In all, 627,675,340 million will be offered actions new shares, in a primary offering, and 69,801,516 million shares that belong to BNDESPar, in a secondary offering. The operations will take place at the same time on the Brazilian stock exchange, the B3 and in New York next Monday (13).
On the North American stock exchange, receipts for shares, the so-called ADRs, which were priced at US$ 8.63, will be offered.
With the process, the government gives up being the controlling shareholder of Eletrobras and will have 45% of the share capital compared to the current 72.2%. However, he will have the so-called “golden share”, a mechanism that allows him to veto decisions that may go against the national interest.
Eletrobras’ capitalization process started in 2021, and it spent a few months on hold while waiting for approval by the Federal Audit Court (Tribunal de Contas da União) (TCU ). the organ approved both the capitalization model as for the estimates of total movement with the operation, around R$ 67 billion.
Of this total, R$ 25.3 billion are in grants paid to the National Treasury for the right to use Eletrobras’ hydroelectric plants. Another R$32 billion will go to the Energy Development Account (CDE), with the aim of relieving electricity bills from 2023.
Source: CNN Brasil
