SAO PAULO (Reuters) - Brazilian state-owned bank Caixa Economica Federal expects to hold an initial public offering of its insurance subsidiary this year, but the IPO of its card unit has been delayed to 2020, its chief executive said on Tuesday.
CEO Pedro Guimaraes told reporters that regulatory hurdles are delaying planned share sales planned for several of the bank’s units.
In March, the company said that it was likely to hold an IPO for its Caixa Seguridade insurance unit in September, as part of a plan to raise 15 billion reais ($3.6 billion) that also included offerings for other units such as its lottery and card operator subsidiaries.
On Tuesday, Guimaraes said that its card unit would not be able to conduct its initial public offering in the second half of this year as initially expected, to avoid competition for the same investors in the insurance IPO.
“It doesn’t make sense to take two operations of this size to market almost simultaneously,” he told reporters during a presentation of the company’s second-quarter results.
Caixa also expects to sell its stake in bank Banco Pan (BPAN4.SA) through a share offering, Guimaraes said. He called the stake “nonstrategic” but added there was no rush to sell it.
Reporting by Aluisio Alves; Writing by Jake Spring; Editing by Chizu Nomiyama and Jonathan Oatis