Business
Aegea takes steps towards an IPO that could be Brazil's first in over 4 years
Aegea takes steps towards an IPO that could be Brazil's first in over 4 years
About this update from Itausa Sa
Brazilian sanitation firm Aegea said on Monday it filed for an issuer-registration change and began the process of engaging financial and legal advisers for a potential IPO, in what would be the country's first new listing in more than four years.In a securities filing, Aegea said it made a request to the local securities regulator CVM to change its issuer registration from category "B" to category "A", a necessary step in a stock-listing process.The company said its decision came in light of "growth in recent years and future opportunities in the sanitation sector".Brazil, home to the largest economy in Latin America, has not seen an IPO since the one from fertilizer producer Vittia BMFBOVESPA:VITT3 in September 2021. Aegea said no formal decision about the IPO has been made yet, as it remains subject to necessary approvals and favorable conditions in the Brazilian and international capital markets.Chief Executive Radames Andrade Casseb told Reuters in April that studies on an IPO were already underway, but the firm had been waiting for better market conditions.Equipav, Brazilian investment firm Itausa BMFBOVESPA:ITSA3, and Singapore sovereign wealth fund GIC (GIC.UL) are the firm's top shareholders.With sanitation operations in 15 Brazilian states, Aegea serves more than 39 million people.