Brazilian state-owned bank Banco do Estado do Rio Grande do Sul SA will issue 96,323,426 common shares owned by its controlling shareholder, the state of Rio Grande do Sul, according to a Sept. 9 filing.
The secondary offering will not represent a capital increase for Banrisul, and there will be no dilution of current Banrisul shareholders, according to the filing.
The price of the offering would be about 2.23 billion Brazilian reais based on the price per share of 23.18 reais issued by the lender on Sept. 9. The shares will be priced after consultation with the market, the bank said.
According to the estimated schedule, the bookbuilding procedure will close Sept. 17, which is when the shares will be priced.
The announcement came after the state-run bank on Aug. 29 said a court revoked an injunction that had been preventing a follow-on offering of the lender's shares.
Net proceeds from the divestment of the shares will be fully reversed to the state government of Rio Grande do Sul.
Bank of America Merrill Lynch will act as lead coordinator for the offering with Banco Múltiplo SA, Banco Itaú BBA SA and Banco J.P. Morgan SA acting as offering coordinators.
Additionally, BofA Securities Inc., Itau BBA USA Securities Inc. and J.P. Morgan Securities LLC will act as international placement agents.
As of Sept. 9, US$1 was equivalent to 4.08 Brazilian reais.
