Energy

Brazilian power firm Focus Energia hires banks for IPO, sources say

Brazilian power company Focus Energia has hired banks to manage an initial public offering, according to a document seen by Reuters and two sources with knowledge of the matter, the latest in a flood of firms attempting to go public in Brazil this year.

By Luciano Costa

SAO PAULO, Oct 16 (Reuters) - Brazilian power company Focus Energia has hired banks to manage an initial public offering, according to a document seen by Reuters and two sources with knowledge of the matter, the latest in a flood of firms attempting to go public in Brazil this year.

The proceeds would be used to finance the construction of renewable energy projects, mainly solar, said one of the sources, who requested anonymity to discuss private matters. The company plans to carry out the IPO by the end of 2020, the source added.

The possible listing was approved during a shareholders' meeting last week, said the other source, who also requested anonymity. It was not clear how much money the company was planning to raise.

Focus Energia declined to comment about the possible listing.

Dozens of companies have filed for potential IPOs this year in Brazil, but several have since abandoned their plans as the jam-packed pipeline has squeezed out some companies.

Earlier this week, energy trading firm 2W canceled its IPO plans.

Focus Energia is active in electricity generation, distribution and trading, according to its website.

(Reporting by Luciano Costa; Additional reporting by Aluísio Alves; Writing by Gram Slattery; Editing by Sonya Hepinstall)

((gram.slattery@thomsonreuters.com; +55-11-95057-1453))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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