BM&FBOVESPA prepares to launch a listing segment for BDRs (Brazilian Depositary Receipts). The objective behind this new project is to allow foreign companies to benefit from the same structure created for the Novo Mercado segment. The announcement was made on Friday, July 25, by the Exchange’s CEO, Mr. Edemir Pinto, during the event to commemorate the 100 companies listed on the Novo Mercado segment. “The idea of launching BDRs is part of our project of broadening the Exchange’s markets in Latin America. We are aiming at all Latin American companies that have the possibility of being listed on the Brazilian market,” stated Mr. Pinto, who also announced the creation of the BM&FBOVESPA in the countryside project. “The new Exchange is a place to think about the future both by investing in stocks and by hedging your agricultural production,” said the CEO, referring to the new program’s objectives.
The president of the Brazilian Securities and Exchange Commission (CVM), Ms. Maria Helena Santana, classified the Novo Mercado segment as a Brazilian asset. “Novo Mercado is probably the institutional factor that most contributes to market development available in our country today,” said Ms. Santana. BM&FBOVESPA’s Chairman, Mr. Gilberto Mifano, highlighted the importance of corporate governance, qualifying the segment as a defining milestone in the Brazilian capital market and as a model recognized throughout the world. “Brazil wins with this model. The Novo Mercado segment is the way modern Brazil resolves its financing needs. This can be witnessed by the fact that our vigorous economy is bravely resisting the economic recession taking place in developed countries,” assessed Mr. Mifano. According to Mr. Mifano, the companies listed on the Novo Mercado segment, together, have a market value of BRL445 billion, almost 19% of BOVESPA’s total capitalization. “The IPOs have captured a total of BRL96.5 billion and have attracted thousands of new individual investors to the market.”
Friday’s event gathered 335 people; among them were some of the chief executives of the companies listed on the segment. Six companies were honored at the event, representing the 100 listed companies: Banco do Brasil, Redecard, B2W, SABESP, Companhia de Concessões Rodoviárias (CCR) and Natura. CCR was the first company to be listed on the Novo Mercado segment, in 2002.
The Novo Mercado segment was created on December 2000, together with the Differentiated Corporate Governance Levels 1 and 2, with the objective of offering a segment of listed companies that would stimulate the interest of investors and add value to the companies. Currently, there are 101 companies listed on this segment, the highest level of corporate governance at BM&FBOVESPA. Since its creation, there have been a total of 111 IPOs, 79 of which have entered the Novo Mercado segment, which also welcomed another 22 companies that migrated from other segments.
By adhering to the Novo Mercado segment, companies pledge to voluntarily adopt better corporate governance practices, in addition to those required by Brazilian legislation. According to these rules, companies should widen investor rights, improve the quality of information provided to investors, and promote capital dilution, which contributes to the valuation and liquidity of their shares.