Brazil’s Sabesp Said to Be Privatized in $2.7 Billion Offering

The state of Sao Paulo, Brazil’s richest and most populous, is giving up control of water utility Sabesp in a jumbo stock offering, according to people familiar with the matter.

The state government is selling 191,713,044 existing shares at 67 reais apiece, said the people, asking not to be named because the information isn’t public yet. An additional allotment of 28,756,956 shares is also being fully sold at the same price, pushing the total raised to about 14.8 billion reais ($2.7 billion), the people said.

The price represents a discount from current levels — Sabesp shares are currently trading at ...