SAO PAULO, April 3 (Reuters) - Brazilian healthcare company Hapvida Participacoes e Investimentos SA said late on Sunday its board of directors had approved a follow-on share offering aimed at raising as much as 1.04 billion reais ($205.39 million).
The firm said in a securities filing it would initially offer 329.34 million new shares, but that could be increased by as much as 20% if demand allows it.
Hapvida, whose shares are down nearly 50% in 2023 so far amid weak results and profitability concerns, had already said it was "studying mechanisms to improve its capital structure" including issuing new shares in a capital increase.
Last week the company also announced funding measures backed by its controlling shareholders, including the sale and leaseback of 10 properties and the potential primary offering to be backed by main shareholders the Pinheiro Family.
Considering Hapvida's closing price of 2.62 reais per share on Friday, the initial offering would raise 862.87 million reais, it said. If the overallotment option was exercised, the amount could reach 1.04 billion reais, it added.
The offering is being managed by Bank of America, UBS, BTG Pactual and Itau BBA. ($1 = 5.0635 reais) (Reporting by Gabriel Araujo; Editing by Steven Grattan)