Banco do Estado de Sergipe SA said the state government of Sergipe in northeastern Brazil, which controls the bank, is interested in selling part of its stake in the lender in a public share offering, according to a filing.
The offer could entail 45% of the bank's common shares and 40% of its preferred shares, but would maintain the state government's control of Banese, as the institution is known.
The bank did not provide a timeline or addtional details for the potential offering in the filing.
The news comes as the Brazilian government under President Jair Bolsonaro aims to shrink and refocus the role the government-controlled institutions play in the country's financial sector.
Earlier in August, the government announced it is looking to sell shares in Banco do Brasil SA, without yielding its controlling ownership position.
