* Suggested price is 12.51-15.01 reais a share
* CPFL to proceed with IPO despite recent market turmoil
SAO PAULO, June 27 (Reuters) - CPFL Energias Renováveis SA, the alternative energy unit of Brazilian utility CPFL Energia SA , plans to raise up to 1.46 billion reais ($665 million) in an initial public offering slated for next month, despite recent market turmoil that has forced other companies to reconsider similar plans.
The São Paulo-based company will offer 27.98 million common shares, while shareholders including Patria Investimentos will sell 43.96 million shares, according to a securities filing on Thursday. Additional and supplementary lots would add 25.18 million shares to the offering.
CPFL Renováveis, as the company is commonly known, suggested a price range of 12.51 reais to 15.01 reais a share for the IPO, which it expects to price as early as July 17, the filing said.
The news comes as a sudden shift in market mood led two other Brazilian companies to rethink their IPOs in the past week. Those looking to go public are facing a delicate balancing act: how to offer adequate risk and returns to investors as growth in Latin America’s largest economy remains weak and market conditions elsewhere sour.
Votorantim Cimentos SA, Brazil’s top cement producer, scrapped its $4.8 billion IPO following disagreements with investors over price, a source with knowledge of the situation told Reuters.
Azul Linhas Aéreas Brasileiras SA, Brazil’s third-biggest airline, may cancel its $450 million share offering because of adverse market conditions, another source has said.
CPFL Renováveis had cancelled the IPO plan last October, citing the global economic downturn and the federal government’s decision to aggressively reduce energy rates when it renews utility contracts for power transmission and distribution companies.
The company hired Bank of America Merrill Lynch to manage the transaction, alongside Morgan Stanley & Co, Bradesco BBI, Itaú BBA, BB Investimentos and BTG Pactual Group.