(Bloomberg) -- China’s State Grid decided to cut the indicative price range for Brazilian subsidiary CPFL Energia SA equity offering to between 27 reais ($7) and 29 reais, said people familiar to the matter, who declined to be named citing information that is not public yet.
The world’s largest utility, State Grid Corp. of China, is selling about 116.8 million shares in its unit in Brazil -- without the supplementary and additional offerings -- to comply with the South American nation’s securities rules, it said in a filing. The price previously announced was from 29.30 to 35.30 reais, according to the filing. Pricing is expected to June 12, the filing said.
The B3 SA - Brasil Bolsa Balcao stock exchange requires companies listed on the Novo Mercado segment, including CPFL, to keep at least 15 percent of shares on the public market. Currently only about 5 percent of CPF’s shares are on the market, according to data compiled by Bloomberg.
The Beijing-based company has an Oct. 31 deadline to comply with the rule. CPFL didn’t reply an emailed request for comment sent after business hours.
State Grid’s has hired Itau Unibanco Holding SA, Banco Santander Brasil SA, Morgan Stanley, Banco Bradesco SA and Banco BTG Pactual SA for the deal, which includes CPFL shares in Brazil and American depositary receipts in New York.
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