On March 1st, Bovespa and the Brazilian capital markets achieved an important landmark. Representatives of listed companies, authorities and important Brazilian and international associations celebrated the mark of 100 listed companies joining the Novo Mercado and the Special Levels of Corporate Governance.
Novo Mercado, Level 1 and 2 are special listing segments created in 2000 for companies that voluntarily decide to offer high standards of disclosure and transparency, as well as the best practices of corporate governance.
The main objective of creating the levels is to provide local and international investors with corporate governance rights in addition to what is offered through the Brazilian regulation.
During these years, 51 companies joined Novo Mercado, 14 the Level 2 and 36 the Level 1. Since the IPO revamping in Brazil, in 2004, most of the newcomers joined Novo Mercado, which became a condition for the success of the offerings among investors, especially institutional and international.
Also, the performance of the Levels can be measured by the evolution of the IGC – the Corporate Governance Index created for the companies that joined the special levels – that has been performing even better than the BOVESPA’s Broad Indices.
The turnover velocity of the companies that joined Novo Mercado and the Level 2 also performed better than the ones listed on the traditional market. Whereas Novo Mercado and Level 2 companies had, accordingly, 90% and 135% turnover velocity, the ratio for the companies listed on the traditional market was 81% on average.
Additional information on Novo Mercado is available on Bovespa's website:http://www.bovespa.com.br/Companies/NovoMercadoSpecial/indexnmi.htm
