Exclusive: Brazil energy trading firm 2W hires banks for $282 million IPO

SAO PAULO (Reuters) - Brazilian energy trading firm 2W Energia has hired banks to manage an initial public offering which may reach up to 1.5 billion reais ($281.48 million), three sources with knowledge of the matter said on Thursday.

Investment banking units of Banco BTG Pactual SA, XP Inc, Bank of America and Credit Suisse will manage what would be the first Brazilian stock exchange IPO by an energy trading firm. Riza Capital is also advising the company.

2W plans to use proceeds from the offering to build solar and wind plants in Brazil’s northeastern region, expanding its business beyond trading. It is currently building a 130 MW wind farm in the state of Rio Grande do Norte.

Companies that both trade and generate energy usually cater to large customers, but 2W plans to sell energy to small- and mid-sized businesses with short-maturity contracts.

The company, which has former Renova Energia founder Ricardo Delneri among its partners, aims to debut on the B3 stock exchange by August or September.

Reporting by Carolina Mandl; Editing by Cynthia Osterman