CPFL Renovaveis Declines in Sao Paulo Trading Debut After IPO

CPFL Energias Renovaveis SA (CPRE3), the power utility CPFL Energia SA (CPFE3)’s renewable-energy developer, fell in its Sao Paulo debut after an initial public offering.

Shares declined as much as 5.5 percent from the 12.51 reais offering price. They were down 3.1 percent to 12.06 reais at 2:45 p.m. in Sao Paulo. CPFL Energia, the parent, fell 1.2 percent to 21.13 reais. The Ibovespa dropped 0.6 percent.

CPFL Renovaveis had estimated in a prospectus that shares would price in a range of 12.51 reais to 15.01 reais. The company and its shareholders are raising as much as 900 million reais ($403 million) by selling 28 million new shares and 44 million existing shares.

CPFL Renovaveis’s offering was the seventh in Brazil this year and followed the suspension of Votorantim Cimentos SA (VEBM11)’s offering June 18.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.