Eletrobras share reserve with FGTS may be apportioned

The deadline to reserve Eletrobras shares with money from the FGTS (Fundo de Garantia do Tempo de Serviço) ended this Wednesday (8), at 12:00, and now investors will need to wait for the results to be released to know if they will be able to use all the amount reserved in the company’s papers or if it will be apportioned.

​If the total amount reserved using the FGTS exceeds the ceiling of BRL 6 billion, there will be a proportional apportionment of the shares among the investors, considering the reserve request of each one of them. The BRL 6 billion limit also includes workers who migrated their FGTS from Petrobras and Vale shares. It was allowed to reserve up to 50% of the FGTS balance to invest in the FMP (Mutual Privatization Fund). In case of apportionment, the amounts deposited in excess will be returned to the FGTS without any remuneration.

Sources heard by Sheet point out that investor demand for Eletrobras shares would have exceeded the offer between three to four times and that FGTS resources exceeded the limit of R$ 6 billion. Eletrobras’ share reserve marks the beginning of the privatization process of the largest electric company in Latin America.​

The value of each purchased share will be announced this Thursday (9), according to the official schedule, and the price will be determined based on the interest of investors.

Eletrobras’ common shares were up 2.08% at 1:37 pm this Wednesday, quoted at R$ 42.67.

On Thursday (9), the negotiation of the ADRS (American Depositary Receipts) of Eletrobras on the New York Stock Exchange, in the United States, will begin, issued as part of the privatization process, according to the energy company’s calendar.

The schedule released by Eletrobras also points out that the period for exercising the over-allotment stock option is scheduled to start on Friday (10th), ending on July 11th.

Next Monday (13) the negotiations of Eletrobras shares on B3, the Stock Exchange, will begin.

Those who are unable to apply the entire amount invested may, if they wish, buy Eletrobras shares, but without the FGTS money, in the retail offer.

For those who invested the FGTS, the shares can only be sold after 12 months. But if the worker fits into one of the situations in which the legislation allows the withdrawal of the Guarantee Fund, he will be able to sell the papers before. This is the case, for example, of those who need the money to buy their own home, the worker who is fired without just cause or retires and whoever has three years without deposits in the FGTS (see here the 16 situations).

If he is dismissed without just cause, he will still have a fine of 40% calculated on the entire balance of the company’s account in the fund, also adding up what he invested in Eletrobras.

Investors who made the reservation without the FGTS money do not have a minimum period of permanence, that is, they can sell the shares at any time.

The investment in Petrobras shares, from August 18, 2000, until May 24, 2022, yielded about 1,153% against 185% of the FGTS, and 289% of inflation, according to Genial Investimentos. In the case of Vale, the appreciation was 3,900% from March 28, 2002 to May 24, 2022, compared to 156% for the FGTS and 247% for inflation.

In the case of Eletrobras employees and retirees, there are 69,747,685 shares reserved for them on a priority basis, which corresponds to 10% of the total number of shares in the public offering, provided there is demand; the rule is valid for anyone who was an employee or former employee on April 30, 2022 and is in the condition of participant or assisted person in the Eletrobras Companies’ supplementary pension plans or who were migrated.

The financial volume in the Eletrobras share offering, within the scope of the electric energy company’s privatization process, can move up to R$ 35 billion, considering the primary offering of 627.6 million shares and an additional lot of 104.6 million shares.​