This is the first operation of this type by an Argentine firm in seven years, in a favorable context for the energy sector
Tariff adjustments and promotion regimes for large investments have made the sector one of the most dynamic. In fact, it has explained a large part of the corporate debt issuances both locally and internationally in recent times.
Genneia, one of the main private players in the energy sector in Argentina, has taken the first formal step to list on the New York Stock Exchange. The company chaired by Jorge Brito submitted a preliminary registration statement to the SEC, the U.S. securities regulator.
This move marks an important milestone for local companies, as it would be the first listing on Wall Street by an Argentine firm in at least seven years. The last similar operation was by the oil company Vista in 2019.
The company clarified that the process is just beginning and that there are still no concrete definitions regarding the offering. “The process is in the initial stage and does not guarantee a public offering,” they indicated. The idea is to proceed when they consider it the right time.
According to the documentation, the issuance would be dual: it would combine a local placement with ADRs in New York. New shares would be offered to raise fresh funds, in addition to the sale of stakes from some specific shareholders. Nevertheless, control of the company would remain in the hands of the current group.
The placement would be coordinated by a syndicate of top-tier international banks. Morgan Stanley and BofA Securities would lead the process, while J.P. Morgan, BTG Pactual, and Latin Securities would act as placement agents.
Genneia has a strong presence in renewable energy, thermal generation, gas transportation, and marketing. It is the main private player in the country's renewable segment. This potential capital opening comes at a time when the energy sector is benefiting from current economic policies.
However, until now, no company had taken the step to offer shares in the market. The recent drop in country risk is one of the factors encouraging companies to assess the appetite of international investors.
The authorization procedure before the SEC is lengthy and requires a significant amount of detailed financial information. Once the public offering is approved, the firm will have to regularly publish its financial statements and other relevant information for investors.
With a consolidated presence in renewables and gas, the company seeks capital to continue growing in a key sector for the national economy.
The most recent precedents for listings on the New York Stock Exchange include Corporación América and Central Puerto in early 2018. Now, after several years, Genneia appears as the pioneer in resuming that path.
