May 11, 2017 / 11:49 PM / a year ago

UPDATE 1-Brazil's Saneago could sell up to 25 pct stake in IPO

(Recasts with confirmation from executive)

SAO PAULO, May 11 (Reuters) - The Brazilian state of Goiás is considering selling up to 25 percent of state-controlled water and sewage utility Saneamento de Goiás SA (Saneago) through an initial public offering (IPO), the company’s investor relations director said on Thursday.

Elie Chidiac confirmed to Reuters the IPO plan originally reported by newspaper Valor Econômico, including the possibility of Goiás state eventually selling up to 49 percent of the firm.

An IPO would make Saneago the latest Brazilian water and sewage utility to capitalize on mounting investor interest in the sector despite uncertainty over regulatory changes.

Shares of peer Cia de Saneamento do Paraná Sanepar SA rose to a record high in February after reigniting market interest with a 2 billion reais ($633 million) share offering in December.

Sanepar has since pared most of those gains and are up only 3 percent in 2017.

$1 = 3.16 reais Reporting by Bruno Federowski; Editing by Guillermo Parra-Bernal, W Simon and Lisa Shumaker

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