The country's antitrust agency said it is investigating at least five companies in a probe focused on works in Rio de Janeiro.
The IPO is expected to help the Goiás state water utility to increase water and sanitation investments.
Without having made any formal commitments, some foreign companies have hinted they are interested in investing in the sector.
BMI Research expects the construction sector to contract this year and only grow around 1% in 2018.
The extension of deadlines to double the width of certain highways will prove beneficial for Brazil's transport segment, says Fitch Ratings