The Brazilian state government of São Paulo raised a total $2.7 billion during the sale of shares to privatize water and sanitation company Sabesp, a source close to the transaction told LatinFinance.
The state completed the second stage of the transaction on Thursday during which financial investors acquired 17% of Sabesp for BRL7.9 billion ($1.4 billion). São Paulo previously sold a 15% stake in the firm to Brazilian utility Equatorial for BRL6.9 billion.
The bookbuilding process generated demand for BRL187 billion worth of shares, of which foreign investors accounted for BRL96.5 billion.
“Sabesp’s public offering will be the third largest in the world,” behind deals by Spanish cosmetics company Puig and Saudi Arabian oil company Aramco, the source said.
Official results are due to be confirmed on Friday.
The Equatorial deal, in which the firm became Sabesp’s reference shareholder, set the offer price at BRL67 per share, well below the BRL82 level reached at the close of trading on São Paulo’s B3 stock exchange on Thursday.