January 22, 2020 / 2:00 PM / a month ago

UPDATE 1-Petrobras to price its largest share offering in a decade on Feb. 5

(Adds BNDES’ CEO comments at WEF, details on the offering)

SAO PAULO, Jan 22 (Reuters) - Brazil’s Petrobras will price its largest share offering in a decade on Feb. 5, it said in a securities filing on Wednesday, through which development bank BNDES will seek to divest part of its stake in the oil company.

The base share offering could raise 19.5 billion reais ($4.66 billion), considering Petrobras’s closing share price on Tuesday. But the size may rise and BNDES may sell up to 23.5 billion reais ($5.6 billion) if demand allows the sale of overallotments.

The last time Petrobras concluded a large share offering was in 2010, but at the time the company was raising money, not its shareholders.

Reuters reported last month that BNDES had hired banks to sell its stake in common shares in Petrobras. The investment banking units of Credit Suisse, Bank of America, Banco Bradesco SA, Banco do Brasil SA, Citigroup Inc, Goldman Sachs Group Inc, Morgan Stanley and XP Inc will manage the offering.

The shares are expected to begin trading on Feb. 7 in Brazil, Petrobras said.

BNDES is divesting common shares of the oil company, but is keeping the preferential shares that it holds.

Part of the sale proceedings will be transferred to the Brazilian Treasury. During the World Economic Forum in Davos, BNDES Chief Executive Officer Gustavo Montezano said the bank plans to pay dividends to the Treasury equivalent to 60% of its profit.

$1 = 4.1999 reais Reporting by Luciano Costa, editing by Louise Heavens

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