With the aim of “bringing companies traded in Latin America closer to European investors”, Iberdrola has decided to incorporate its Brazilian subsidiary, Neonergia, into Latibex. In this way, the securities of the electricity company will be listed on the only international market dedicated exclusively to Latin American securities traded in euros.
The firm, 53.4% controlled by Iberdrola, has a capitalization of close to 4,300 million euros, making it one of the benchmarks in the Brazilian energy market. Only during the first quarter of 2022, its net profit soared 20% to reach 1,100 million euros. Its actions in Brazil mark this course an upward trend of close to 15% despite having distributed dividends.
Mario Ruiz-Tagle, current CEO of Neoenergia, has highlighted the role that Covid-19 has played in the subsidiary’s IPO, assuring that “they have had to wait for two years”. Despite this, he clarifies that, after this impasse, Neonergía is now a more “modern, efficient and profitable company, a reference in the Brazilian market with nearly 16 million customers, capable of attracting 300,000 new customers each year”
The strategy of the company led by José Ignacio Sánchez Galán is to open the door to European liquidity by facilitating the purchase and sale of Neonergia securities. His incorporation to Latibex will allow investors to operate with the subsidiary’s titles in euros and within the schedules dictated by the European markets.
Of the 5,300 megawatts that the company has installed in Brazilian territory, 80% comes from renewable sources, the company is a leader in this segment. In this sense, throughout this year it will triple its portfolio of wind assets, until reaching 90% of green capacity. Currently, it supplies a total of 11.2 TWh to its final consumers.
Since Iberdrola came to control a large part of its shareholding package, the company has increased its market share to reach the figure of 16 million customers. “It is one of our growth pillars,” they say from the company. It has a workforce of more than 15,000 people and, according to data provided by the company, generates a total of 28,000 indirect jobs.
Jesús González Nieto, managing director of the Latibex and BME Growth market, was “excited” about what represents “a new stage” for the index he directs. “Since its creation, Latibex has been the meeting point for investors and companies from Spain and Latin America,” he explained.
After the incorporation of Neonergia, the Latibex has 12 Brazilian companies, six from Mexico, two from Argentina and one from Peru.
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