One of the largest share this year offering has just gotten bigger.  Petrobras, the giant Brazilian deep water supremo, has just increased its share offering to $ 79 billion (dwarfing AgBank’s IPO earlier this year by 3 and half times) – this is on the back for the Government – Petrobras Oil for share deal.  The FT asks what is going on ?

There are three theories: the first, a pessimistic one in that share offering demand is low and Petrobras needs to sell extra shares to finance its $224 billion investment plan.  There is also an optimistic scenario in that a big Soverign Wealth Fund (perhaps the Chinese, Iranians or possibly Qatar) has expressed interest and this is backed by some of the chatter coming out of some of the fund managers on the ground and close to the roadshow. The third is brinkmanship in that the company is bluffing but as one analyst is quoted in the FT Energysource says “would be a dangerous game to play”.      Why has Petrobras increased its share offer? | beyondbrics | FT​.com.