Petrobras raises $70 bn in worlds largest IPO

Brazilian state oil company Petrobras raised $70 billion on Thursday in the worlds biggest share offering,giving the company the financial muscle it needs to tap vast offshore oil reserves.

The cash will help fund the worlds largest oil exploration plan,which at $224 billion for the 2010-2014 period aims to turn Brazil into a major energy exporter. The Rio de Janeiro-based 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 commonor votingshares at 29.65 reais each. Uncertainty that the offering might not come off had brought a prolonged sell-off of Petrobras shares that shaved more than $70 billion off its market value.