SAO PAULO, May 12 (Reuters) - Brazilian appliance and electronics retailer Via Varejo SA is considering a share offering but will not do a transaction with a high dilution rate, two people with knowledge of the matter said on Tuesday.
Brazilian media reported that Via Varejo was considering an issuance of up to 5 billion reais ($864 million) in shares, but an issue of this size would mean around 50% dilution, the sources added.
At current market prices, the company would issue a smaller value, the people added, asking for anonymity to disclose private talks.
If the shares rise after release of first-quarter earnings, the company may issue shares, as long as the dilution is not higher than 25% of its market capitalization, the sources said.
Banks have not yet been hired.
$1 = 5.7887 reais Reporting by Tatiana Bautzer; Editing by Steve Orlofsky