Neoenergia joins Latibex on June 7
• Iberdrola's Brazilian energy subsidiary will be the 19th company to be listed on this international market for Latin American securities
• The company, one of the large Brazilian energy companies with a market capitalisation of around 21.751 billion Brazilian reais (around 4.3 billion euros), is up 15% on the stock market so far this year with dividends
• The FTSE Latibex Brazil index, of which the company is expected to form part, has risen 30% so far this year
New addition to Latibex. Iberdrola's Brazilian energy subsidiary, Neoenergia, will join the international market for Latin American securities operated by BME on 7 June. The Brazilian company will be the nineteenth company listed on this market and the twelfth from Brazil.
The company will be included in the FTSE Latibex All Shares index and, subsequently, in the FTSE Latibex Brazil index. The latter index has risen 30% so far this year. Neoenergia will also be a candidate for inclusion in the selective index of this market, the FTSE Latibex Top.
This addition to the market reinforces Latibex's role as a bridge between companies and investors on both sides of the Atlantic and represents the growing interest of Latin American companies in the European financial markets.
Neoenergía is a leading company in Brazilian grids with close to 700,000 kilometres of power lines. It controls five distribution companies in 18 states plus the country's federal district and is a renewable energy giant, with 5,200 megawatts installed, 80% of which are green.
Iberdrola's Brazilian subsidiary has already established itself as an energy benchmark in Brazil: it has a portfolio of 16 million customers and a market share of 18%, having invested 65 billion reais (around €12.5 billion) since its creation. The Brazilian subsidiary has contributed to Iberdrola becoming the most valuable company on the Spanish Stock Exchange and the leading energy company in Europe with a capitalisation of around €72,000 million.
The company, which employs more than 15,000 people and generates indirect employment of more than 28,000 jobs, had a turnover of 41.12 billion Brazilian reais (€8.1 billion), up 32%, its ebitda soared 52% to 9.856 billion Brazilian reais (€1.944 billion), with a net profit of 3.925 billion reais (€744 million), up 40%.
Neoenergia began operating in 1997, but took a giant leap in 2017, when it was merged by Elektro, also owned by Iberdrola. Its debut on the stock market took place through an Initial Public Offering (IPO) on 1 July 2019 on the Novo Mercado B3 segment of the Brazilian Stock Exchange.
Iberdrola controls 53.5% of Neonergia, which debuted on the Brazilian stock exchange in July 2019 and has become one of the largest listed companies on the São Paulo Stock Exchange. Its second largest shareholder is the insurance company Previ (30.3%), while the free float accounts for the remaining 16.2%.
The trading code of the company shall be "XNEO".
Auriga Global Investors will act as a specialist broker for the security.
Latibex was created in 1999 and is the only international market focused exclusively on Latin American securities in euros. It brings European investors, including small Spanish investors, closer to the Latin American region through a solid and secure market, supported by the trading and settlement platform of the Spanish Stock Exchange. Following the incorporation of Neoenergia, Latibex now includes twelve Brazilian companies, five Mexican companies, one Argentinean company and one Peruvian company.
More information on Latibex can be found here.