Banco do Brasil SA on Oct. 3 announced a follow-on public offering of 132,506,737 common shares — to be priced Oct. 17.
The offering will comprise 64 million shares held in the bank's treasury and 68,506,737 shares held by government severance indemnity fund FI-FGTS. The bank's board recently approved the sale of treasury shares alongside a secondary offering of shares owned by the FI-FGTS.
The offering is subject to market conditions and approval from Brazil's securities commission, the state-run bank said.
Banco do Brasil also temporarily suspended its financial guidance due to the offering's announcement.
The sale could generate proceeds of 5.75 billion Brazilian reais based on the bank's Oct. 2 closing price, Reuters reported, adding that the investment banking subsidiaries of Caixa Economica Federal, Banco do Brasil, JPMorgan Chase & Co., Credit Suisse Group AG and XP Investimentos will manage the offering.
As of Oct. 2, US$1 was equivalent to 4.15 Brazilian reais.
