6.9 C
London
Friday, January 27, 2023
HomeEconomyUpward debut for Iberdrola's subsidiary in Brazil: Neoenergia rises 2.3% in its...

Upward debut for Iberdrola’s subsidiary in Brazil: Neoenergia rises 2.3% in its debut at Latibex | Economy | The USA Print

Date:

Related stories


Directors of the Brazilian subsidiary of Iberdrola, Neoenergia, this Tuesday at the Madrid Stock Exchange.
Directors of the Brazilian subsidiary of Iberdrola, Neoenergia, this Tuesday at the Madrid Stock Exchange.ALTEA FABRIC (EFE)

Neoenergia, the Brazilian subsidiary of Iberdrola, opened this Tuesday with increases in the Latibex, the index dedicated to Latin American securities and operated by the Spanish Stock Exchanges and Markets (BME). In its stock market debut in Spain, its shares have advanced by 2.29%, to 3.57 euros. The company, one of the main players in the Brazilian electricity market, thus intends to attract investors from this side of the Atlantic, who are “long-term and stable.”

This has been pointed out by Fernando Capelastegui, director of Neoenergia and future CEO of the same, who has assured that the entry of the company in the Latibex represents “a channel that opens the door” to European and Spanish investors. “We have investments of 5,000 million per year. It is organic, permanent growth”, he said in statements to the press after the traditional ringing of the bell at the Palacio de la Bolsa in Madrid.

The manager has assured that the regulation in Brazil is clear and the Government’s commitment to renewables is firm. “Our investments are long-term, 20-30 years, with stable regulation. They are low risk investments. we are not one telecowe are not one start-up, we are a group that works in a regulated market with a stable and very well defined regulation. I think Brazil is an example in this sense”, he added. “We have a well-defined dividend policy, and therefore our desire is to attract this type of shareholder: long-term, stable, who are with us.”

Diversified business

Neoenergia has been operating in Brazil since 1997, where it is present in 18 of the country’s 26 states. Since 2019, it has been listed on the São Paulo Stock Exchange, after merging with Elektro, also owned by Iberdrola. With a capitalization of more than 4,260 million, nearly 700,000 kilometers of power lines and 5,200 megawatts installed – 80% are green -, it is one of the main players in the Brazilian electricity sector, with a market share of 18%.

Its business is divided into four areas: generation, transmission, distribution and marketing. It has five distributors and serves more than 15 million customers in Brazil. Iberdrola controls 53.5% of the company. Its second largest shareholder is the insurance company Previ (30.3%), the largest pension fund in Latin America, while the free-float accounts for the remaining 16.2%.

He knows in depth all the sides of the coin.

subscribe

The current CEO of the firm and next CEO of Iberdrola Spain, Mario Ruiz-Tagle, has made the traditional bell ringing and has indicated that the jump to the Spanish index is the best way to increase the investor base in Europe. The Brazilian company is the nineteenth company listed on the Latibex and the twelfth from Brazil. The manager underlined that Neoenergia offers a diversified portfolio of projects, focused on growth, efficiency and profitability, a stable regulatory framework and the experience of the Iberdrola group, among other advantages.

Since January 2021, it has been part of the portfolio of the Corporate Sustainability Index B3 ―Brazil, Stock Exchange, Balcão―, which brings together the companies that have the best governance and corporate sustainability practices.

The managing director of Latibex, Jesús González Nieto, accompanied Ruiz-Tagle at the firm’s stock market debut and emphasized the “innumerable ties” between the two sides of the Atlantic, underlining the importance of incorporating a company like Neoenergy to index. “Latibex was launched in 1999 for investors to invest in sister companies in Latin America directly in euros. This year it has had an excellent revaluation, of almost 30%, not insignificant given this context of uncertainty”, he pointed out.

Also Read:

The labor crisis in the airline sector leads to a chaotic summer at airports | companies | The USA...
The current stock market crisis has already destroyed more value of the S&P 500 than the one of 2008...
The community of neighbors will be able to leave the defaulters without a pool and demand more inter...
Biden plans to suspend the federal gas tax to combat inflation | Economy | The USA Print
How is the tax on electricity companies in other European countries | companies | The USA Print
Spain: The Government only spent 2,400 million of European funds last year | Economy | The USA Pri...
Norway rubs its hands with the energy crisis: "There are times when it's not fun to make money, and ...
A week of gas cap: neither fiasco nor panacea | Economy | The USA Print
The richest 1% concentrates 17% of the national income | Economy | The USA Print
The unions demand that the CEOE return to the salary negotiation table: "If there is no agreement, t...
Kellogg splits into three companies to accelerate growth | Economy | The USA Print
The funds give Abengoa until Friday to save itself from bankruptcy | Economy | The USA Print
The CNMV will redouble surveillance on cryptocurrency advertising at sporting events | Economy | T...
Israel Arroyo leaves the post of Secretary of State for Social Security and Pensions | Economy | T...
Elon Musk says there are three issues to be resolved to close the purchase of Twitter | Economy | ...
Airef criticizes the Government for the lack of information on the execution of European funds | Ec...
El Corte Inglés repurchases half of the shares held by the Qatari investor Al Thani for 387 million ...
Montero cools off Yolanda Díaz's proposal and advances that the surcharge on electricity companies w...
Mark NT
Mark NT
Mark NT was born and raised in the India. He worked at a literary development company as a publisher. He is a creative website writer for teens and a good book reviewer.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Up to 75% off on Best Web Hosting

X