Petrobras drills home its advantages
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Chief executive Edemir Pinto, Brazil’s vice-president Jose Alencar, president Luiz Inácio Lula da Silva, finance minister Guido Mantega and Petrobras chief executive Jose Sergio Gabrielli attend a ceremony to mark the start of the offering of shares by Brazilian state oil company Petrobras in Sao Paulo September 24 |
Petrobras’s eagerly anticipated follow-on equity issue priced at the higher end of expectations, benefiting from heavy global demand for the shares. Demand reached $128 billion according to reports as Euromoney went to press ($98 billion from existing minority shareholders and $30 billion from institutional investors), enabling the Rio de Janeiro-based oil company to raise a record $70 billion by selling 1.87 billion preferred shares at R$26.30 and 2.4 billion common shares at R$29.65.
Petrobras benefited from the sheer scale of global liquidity looking for investment opportunities...
