Pernambuco water utility readying plans for IPO

Thursday, August 30, 2018

Compesa, the water utility in northeast Brazil's Pernambuco state, will be ready to hold an IPO in the near future, company president Roberto Tavares told BNamericas.

"Compesa has a high level of corporate governance, avoiding any political influence. Looking ahead, the future of Compesa is to tap the capital market and to hold an IPO," said Tavares, who has led the company since 2011.

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The utility is fully controlled by the state, and the IPO would be a strategy to attract minority shareholders with the government keeping a controlling stake, he added.

"Regarding the timetable of an IPO, at this moment, this year, it's difficult as the capital market in Brazil is highly volatile," said Tavares.

The executive, who is also president of Brazil's association of state sanitation companies Aesbe, said that accessing capital markets and public-private partnerships will be the main options for state-run companies to advance with their investments plans in the coming years.