O IRB Brazil (IRBR3), a Brazilian reinsurance company, is preparing a follow-on offering of shares that is expected to move around R$1 billion, according to people familiar with the matter.
O IRB is in conversations with banks including Banco Itaú BBA and Bradesco BBI for the possible transaction, which could happen in the next 30 days, according to the people, who asked not to be identified because the information is not public. Talks continue and there is still no final decision, the people said.
O IRB Brazil does not comment, while Itaú BBA and Bradesco BBI did not immediately respond to a request for comment. Current shareholders do not intend to sell their shares in the transaction, according to the people.
The actions of IRB fall 43% year-to-date, against an 8% gain in the Ibovespa in the same period, after recent losses added to concerns about the coverage of the company’s technical provisions.
Last month, analysts from JPMorgan said they would not rule out a capital increase in the short term.
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