Tupi's triumph

24 September 2010 By Christopher Swann

The oil giant got its cash and shattered a 23year record for the largest share sale. But in supporting the partial renationalization investors took a leap of faith. In their excitement over Brazil s bumper reserves they have overlooked the pitfalls of greater state control.

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Brazilian state oil company Petrobras raised $70 billion on Sept. 23 in the world's biggestever share offering, giving the company the financial muscle it needs to tap vast offshore oil reserves.

The cash will help fund the world's largest oil exploration plan, which at $224 billion for the 20102014 period aims to turn Brazil into a major energy exporter.

The Rio de Janeirobased company sold 1.87 billion new preferred shares at 26.30 reais each, the company said in a regulatory filing. It sold 2.4 billion new common or voting shares at 29.65 reais each.

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