Water Utility Sabesp Kicks Off $3 Billion Brazil Share Sale

Sao Paulo state is giving up control of company in equity deal
Privatization process lures investors from Equatorial to Aegea

A facility operated by Sabesp, a state-owned water and sewage treatment company, in Sao Paulo, Brazil, on Tuesday, Dec. 12, 2023. Latin America's largest water utility got the green light to be privatized next year, in a win for right-wing Sao Paulo Governor Tarcisio de Freitas, who has pledged to improve public services.Photographer: Victor Moriyama/Bloomberg

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By Vinicius Andrade and Barbara Nascimento

June 22, 2024 at 12:50 AM UTC

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Sabesp, Latin America’s biggest water utility by market value, launched a share offering that may become the region’s largest in two years.

Sao Paulo state, which owns a controlling stake in Cia de Saneamento Basico do Estado de Sao Paulo, as the Brazil utility is formally known, is offering 191,713,044 existing shares for sale, according to a filing Friday. If an over-allotment is fully sold, it could add as many as 28,756,956 shares to the transaction.