Cosan S.A. (CSAN) Plans to Raise Up To 10 billion Reais Through Public Offerings

Cosan S.A. (NYSE:CSAN) is one of the Best Penny Stocks to Buy with the Highest Upside Potential. On September 22, Reuters reported that Cosan S.A. (NYSE:CSAN) a major Brazilian conglomerate, indicated its plans to raise up to 10 billion reais ($1.9 billion) through public offerings. Management noted that the funds will be used only to reduce Cosan’s debt, not to support its joint venture, Raizen, with Shell. The company’s net debt stood at 17.5 billion reais at the end of June, unchanged from earlier in the year. Despite some analyst support, Cosan S.A. (NYSE:CSAN)’s shares fell sharply by 21%, their largest drop ever, wiping out about 3 billion reais in market value. Moreover, Raizen’s shares also dropped 9% as the company faces challenges due to low sugarcane yields, affecting profits and debt. Cosan S.A. (NYSE:CSAN) is a Brazilian company active mainly in oil marketing and energy. While we acknowledge the potential of CSAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.