Iberdrola brings its Brazilian subsidiary closer to the Spanish stock market

1 JUN 2022 - 06:26CEST

Iberdrola wants to strengthen its presence on the Spanish stock exchange. The energy company chaired by Ignacio Sánchez Galán has decided to bring Neoenergia, its Brazilian subsidiary, to Latibex, the international Latin American stock market operated by BME.

Neoenergia will start trading on Latibex on June 7, as it has informed the Brazilian market regulator, with the aim of making it easier for European investors to trade the company's shares in euros and during European market trading hours. The company will also be able to increase its financing capacity and raise its visibility among investors outside Brazil.

The Spanish energy company's Brazilian subsidiary began trading in July 2019, when it made its debut on the Novo Mercado B3 segment of the São Paulo Stock Exchange. Iberdrola and its partners placed 17.13% of the capital for 750 million, at a price of 15.65 reais per share. Since then, the company has appreciated by 14% and capitalizes some 21.7 billion Brazilian reais, some 4.3 billion euros.

Iberdrola holds 54.3% of its capital, while the insurance company Previ holds 30.3%. The free float accounts for the remaining 16.3%. So far this year, Neoenergia shares have risen by 10.4%, compared to the 6% advance of the selective Bovespa.

According to its parent company, the Brazilian energy company is the leader in networks in Brazil, with close to 700,000 kilometers of power lines, which it operates through five distributors in 18 Brazilian states. Neoenergia has a high exposure to renewable energies, since 80% of the 5,300 megawatts installed are renewable. The company, which has a total of 16 million customers in Brazil, plans to triple its portfolio of wind assets this year to 1,600 MW. Neoenergia has an 18% market share, having invested 65 billion reais (about 12.5 billion euros).

In the first quarter of the year, the company raised its net profit by 20% to 1.2 billion Brazilian reais, more than E1.1 billion, higher than in all of 2021, when it posted net earnings of 3.925 billion reais (E733 million). In 2021, its revenues rose by 32% and its ebitda by 52%.