July 9, 2010 / 2:36 AM / 9 years ago

UPDATE 1-Brazil's Renova raises $98 mln in IPO

* Specializes in hydroelectric, wind power generation

* Shares sell at lower end of expected range (Adds details, background)

SAO PAULO, July 8 (Reuters) - Brazilian electricity company Renova Energia (RNEW11.SA) raised 172.5 million reais ($98 million) in an initial public offering that was delayed for about 60 days as markets swooned globally due to the euro region debt crisis.

The company, which specializes in power production from small hydroelectric dams and wind turbines, sold 11.5 million voting shares at the minimum price of 15 reais each, according to a filing with the securities regulator.

Renova revived the IPO after suspending it previously due to adverse market conditions but failed to go beyond the lower end of the 15-17 reais price band it had estimated.

This was even lower than its initial fund raising plan.

According to the IPO prospectus, Spain’s Santander bank (SAN.MC), one of the largest retail banks in Brazil and the lead manager of the offering, have committed to buy between 59 and 75 million reais worth of the shares with a selling price of no more than 15 reais each. ($1=1.763 reais) (Reporting by Cesar Bianconi and Guillermo Parra-Bernal; Editing by Tim Dobbyn and Anshuman Daga)

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