Brazilian utility CPFL Energia is once again planning to sell a stake in its renewable energy subsidiary through an initial public offering (IPO).

According to the Wall Street Journal, the company dropped its original IPO plans for CPFL Energias Renovaveis SA at the end of last year due to “unfavorable market conditions”.

However, following recent successes in the Brazilian IPO market, with several companies successfully spinning-off units and raising billions of dollars, CPFL Energia plans to revive its plans.

Local newspaper Valor Económico said that CPFL Energia could earn up to $370m if the IPO is successful.

CPFL Energias Renovaveis owns over 5500 MW of renewable electricity projects, including wind power, small-scale hydropower and biomass power, with 1153 MW in operation and the rest under construction.

CPFL Energia, owns 63 per cent of the renewable energy unit, with other shareholders including six investment funds control 34 per cent of the firm’s shares.

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