The initial public offering (IPO) of Caixa Security will take place in Brazil and was officially resumed last Thursday (27), after being shelved last year due to the pandemic.
The operation will mark Caixa's debut with a business listed on the stock exchange. The values have not yet been closed. The idea of the public bank, according to sources, is to sell up to 30% of the company in the third attempt that will make it to list it on the stock exchange. On the eve of the IPO being frozen, the operation was estimated at R$15 billion (US$2.75b), and the objective of the public bank was to evaluate it between R$50 billion (US$9.2b) and R$60 billion (US$11b).
With the pandemic, the public bank focused on concluding the partnerships that will be under the umbrella of Caixa Security. The completion of the move puts an end to the restructuring of the operation and also opens the door to the IPO. The new companies, which come into effect now, have been closed with private partners and are expected to last 20 years.
"We have already received R$7 billion (US$1.3b) due to the restructuring of Security. This year alone there were more than R$2 billion (US$370m). The security business reinforces the size of Caixa," said entity's president, Pedro Guimarães, this week, during an event of Credit Suisse on investments in Latin America.
At the time, he said that the public bank would already demand twice the value of the initial public offering (IPO) of its insurance holding company. He considered, however, that it depends on stock prices and market conditions, in addition to the necessary approvals. He also signaled that the IPO of the security division was coming soon. "I hope soon to have a more objective conversation about specific operations so that investors can be our partners," he said.
According to Guimarães, with the partnerships closed and about to start, Caixa Security is ready to resume the IPO, shelved due to the pandemic. "Now, there is no doubt," he added. In addition to Caixa Security, the public bank has four other IPOs on the horizon. They are: the digital bank, the card business, the asset management and lottery area. "We have five possible operations, four depend on management. The other, the lottery, has a legal issue," explained Guimarães.
In the case of Caixa Segcurity's IPO, the same financial advisors previously hired must be maintained, according to a source. The operation is being structured by the public bank itself, alongside Morgan Stanley, Bank of America, Itaú BBA, Credit Suisse and Banco do Brasil. Sought, Caixa did not comment.
Source: Estadão
