Engie Brasil , a leading company in the renewable energy market, announced on Monday, July 6th, that it has filed a request with the Brazilian Securities and Exchange Commission (CVM) to register a primary share offering.
According to the company, a subsidiary of the French company Engie, the follow-on offering will involve 178,718,109 common shares and may include an additional lot of 147,976,807 shares to be issued by the company in this process to meet any potential additional demand.
Under these terms and taking into account the share price of R$ 32.14 on the trading session of last Friday, July 3rd, the initial offering could raise up to R$ 5.74 billion. And, with the eventual addition of the additional stake, to the level of up to R$ 10.5 billion.
The share price will only be determined, however, on July 14th. The offering will be coordinated by Itaú BBA, Santander, Bradesco BBI, BTG Pactual and Morgan Stanley, and will also involve placement efforts abroad.
As part of this process, Engie reported that, of the total raised, R$ 5.74 billion will be used to pay for the 40% stake currently held by Engie Brasil Participações Ltda (EBP), its controlling company, in the Jirau hydroelectric plant.
The company also emphasized that, after deducting the amount included in this commitment, the net proceeds raised in the offering will be used to strengthen and optimize its capital structure.
At the same time, Engie also announced the approval of a public offering of simple debentures , not convertible into shares, in two series, for a total amount of R$ 700 million.
These funds raised through the debenture issuance will, in turn, be used to replenish working capital and finance the implementation of the company's business plan.
Despite adding a large-scale asset with an installed capacity of 3,750 megawatts, the acquisition of the Jirau Power Plant, initially by EBP, had been questioned precisely because of the values involved in the operation, which were above market estimates.
Now, in addition to financing and enabling the acquisition of this 40% stake in Jirau Energia by EBP, which also has AXIA Energia and Mitsui as partners, the follow-on offering paves the way for Engie to reduce the leverage of its operation.
In its first quarter 2026 financial report, the company stated that its leverage, measured by the net debt/EBITDA ratio, decreased from 3.3 times at the end of 2025 to 3.2 times. However, this level is still well above its historical levels.
At the same time, the acquisition of Jirau aligns with Engie's plan to strengthen investments in hydroelectric plants, which currently account for about 70% of the company's generated energy capacity, and in transmission lines, which total 3,205 kilometers in the country.
In a recent interview with NeoFeed , Eduardo Sattamini, CEO of the company, emphasized that the crisis in the electricity sector, generated by the oversupply of renewable energy, which has led to production cuts at wind and solar power plants, was causing the company to reposition its portfolio.
"Engie should not invest in new intermittent capacity until we have visibility that the system needs this energy," the executive stated. He also commented on the transaction involving the Jirau hydroelectric plant.
“The advantage for us is that transferring 40% of the Jirau plant to Engie Brasil would increase the company's hydroelectric portfolio from 62% to 75%, making the results more resilient,” he said. “Jirau adds significant value because the concession extends until 2047, extending the useful life of this asset.”
By filing the request for a follow-on offering, Engie Brasil will bring new milestones to these offerings in the Brazilian capital market. In 2026, Moura Dubeux, Azul, Banco Pine, and Pague Menos have already resorted to this strategy.
Last Friday, also at this same meeting, ISA Energia reported that it is evaluating the possibility of carrying out a follow-on offering that could raise approximately R$ 650 million.
Engie Brasil's shares were up slightly by 0.40% around 11:15 am on the B3 stock exchange, trading at R$ 32.27. Year-to-date, the shares have risen 2.8%, valuing the company at R$ 36.8 billion.
