SAO PAULO, March 20 (Reuters) – Brazilian power company Neoenergia SA has picked the investment banking units of JPMorgan Chase & Co, Bank of America Corp and Banco do Brasil SA to manage its initial public offering, three people familiar with the matter said on Wednesday.
Other banks may still join the group managing the IPO, added the source, who asked for anonymity to discuss the plans openly.
The Neoenergia offering is part of the government of President Jair Bolsonaro’s agenda of seeking leaner state-controlled companies through divestments.
Spanish power producer Iberdrola, is the controlling shareholder in Neoenergia with a 52.45 percent stake, state-controlled lender Banco do Brasil SA, owns 9.34 percent, and Brazilian pension fund Previ owns 38.21 percent.
Banco do Brasil is seeking to sell its full stake in Neoenergia, as it is considered non-core. Previ previously said it would like to list the company and partially sell its shares.
Earlier this month, Reuters reported that partners of Neoenergia would seek advisers to relaunch the IPO. In 2017, the company tried to list Neoenergia on the Sao Paulo-based stock exchange B3, but it failed as pricing fell short of the expectations of the Brazilian shareholders.
Neoenergia, JPMorgan, Bank of America and Banco do Brasil declined to comment on the matter. (Reporting by Carolina Mandl; Editing by Rosalba O’Brien and Leslie Adler)
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