CPFL Energias Renovaveis SA, South America’s biggest owner of wind farms, completed an initial public offering that raised 900 million reais ($404 million) to fund new projects including solar-power plants.
CPFL Renovaveis, as the company is known, sold 71.9 million shares for 12.51 reais each, the low end of a marketed range of 12.51 reais to 15.01 reais, Brazil’s securities regulator Comissao de Valores Mobiliarios said yesterday in a filing.
CPFL Renovaveis is one of the few well-capitalized developers exploring solar energy in Brazil, Maria Gabriela da Rocha Oliveira, a Sao Paulo-based analyst at Bloomberg New Energy Finance, said yesterday in a telephone interview before the IPO was completed. The country’s nascent solar industry will grow in the coming years as costs for photovoltaic panels fall.
“This is the next step for wind developers” in Brazil, she said. “It will help them diversify from wind.”
CPFL Renovaveis owns Brazil’s biggest solar plant, a 1.1-megawatt facility in the southeastern city of Campinas, and is seeking to install panels at commercial buildings, Oliveira said.
Brazil has three utility-scale photovoltaic-solar projects in operation with a total of 2.5 megawatts of capacity. Germany, the biggest solar market last year, has 402 projects online with more than 3,000 megawatts of capacity, according to data compiled by Bloomberg.
Grupo BTG Pactual, the lead underwriter in the deal, and Banco do Brasil SA pension fund Previ agreed to buy as many as 71.9 million shares if demand fell short, according to a prospectus.
CPFL Renovaveis was created as a joint venture between utility CPFL Energia SA’s renewable-energy assets and local developer ERSA-Energias Renovaveis SA in August 2011, according to its 2012 annual report. It has 1,153 megawatts of projects online including 15 wind farms.