Caixa Econômica intends to make public offers for lotteries and other segments

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Caixa Econômica wants to put its insurance holding company on the stock exchange until April
Photo: Marcelo Camargo / Agência Brasil

Caixa Econômica Federal wants to include its insurance holding company, Caixa Seguridade, on the Stock Exchange, between March and April, as reported in the Estadão article. The initial public offering of shares will be national and was reactivated on the last day, 27, after being stopped in 2020 due to the pandemic.

The action marks Caixa’s entry with a business listed on the Stock Exchange. The purpose of the public institution is to sell up to 30% of the company. Close to the IPO being frozen, the transaction was estimated at around 15 billion dollars, but the bank’s intention was to evaluate between 50 and 60 billion reais.

With the pandemic, Caixa focused on finalizing the agreements that will remain with Caixa Seguridade. The end of this movement ends the stage of operational structuring and also sends the IPO. The new associations, which are effective from now on, were concluded with private partners and can last up to two decades.

“We have already received R $ 7 billion due to the restructuring of security. This year alone, there were more than R $ 2 billion. The security business strengthens the size of Caixa,” said Caixa’s president, Pedro Guimarães, at a meeting with Credit Suisse on investments in Latin America.

At the time, Guimarães declared that the institution already demanded twice the amount of its initial public offering (IPO) of its holding company. He stressed, however, that it would depend on the value of the shares and the market situation, in addition to the appropriate approvals.

“I hope soon to have a more objective conversation about specific operations so that investors can be our partners,” he commented.

“I hope soon to have a more objective conversation about specific operations so that investors can be our partners,” he commented.

According to him, with all official associations, Caixa Seguridade is able to resume the IPO. “Now, there is no more doubt,” he added.

In addition to Caixa Seguridade, Caixa Econômica Federal also has four other IPOs: the digital bank, lotteries, the asset management segment and the card area. “We have five possible operations, four depend on management. The other, the lottery, has a legal issue”, he stressed.

In relation to Caixa Seguridade, the financial advisors previously hired need to be retained. In addition, the movement is being promoted by Caixa Econômica, together with Morgan Stanley, Bank of America, Itaú BBA, Credit Suisse and Banco do Brasil.

The state bank preferred not to comment on the information doubted by Estadão.