Venezuelan Vice President Delcy Rodríguez at the annual meeting of the Ibero-American Federation of Stock Exchanges and Stock Markets. Photo: Últimas Noticias.
The executive vice president of Venezuela, Delcy Rodríguez, announced that on September 21 the placement of up to 5% of CANTV’s shares in the Caracas stock market will begin in four phases. She also provided information about the next placement of shares of mixed-ownership oil companies in the stock market.
She made these announcements during the annual meeting of the Ibero-American Federation of Stock Exchanges and Stock Markets (FIAB) which brought together representatives of the stock exchanges of 22 Latin American countries and Spain, as well as analysts and investors.
CANTV Shares Rise 19% as Venezuelan Government Offers Some Public Company Shares on Stock Exchange
Rodríguez announced that the public offering of the shares of Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) will begin on September 21. The public offering of 5% of the Class D shares has been authorized, and the public offering of shares will be executed in several rounds and the shares will be sold at market price.
The funds obtained from the sale of the shares will be used to invest in projects for the expansion of the services of the company, according to a CANTV press release.
Vice President Rodríguez highlighted that this measure will open doors to Venezuelan and foreign investors.
“President Nicolás Maduro announced the opening of the sale of shares of Venezuelan state-owned companies—of the companies that already participate in the stock market such as Banco de Venezuela, CANTV. We are also going to open the sale of shares of joint ventures of Petróleos de Venezuela. This process is already underway and soon we will have news about it,” said the vice president in her speech at the meeting.
Reasons and Implications in Sale of Venezuelan Public Companies Shares
This public offering of CANTV shares is being executed in compliance with the instructions of President Nicolás Maduro, who established the policy of Socialization of the Capital of the State Companies, offering a range of 5% to 10% of the shares of certain companies on the stock market, with the purpose of collecting funds to invest in the public companies.
Within this framework, CANTV will issue up to 39,357,042 Class “D” shares, in order to promote financing for the various projects and services that are executed by the company in Venezuela.
(Últimas Noticias) by Odry Farnetano
Translation: Orinoco Tribune
OT/SC/AF
