Novo Mercado to allow offers below $500 MM reais without the analysis of B3’s Listing Commission

From now on, companies that want to conduct offers below $500 MM reais to list in or migrate to the Novo Mercado, B3’s listing segment with the highest level of corporate governance requirements, will no longer be subject to the analysis of the Stock Exchange’s Listing Commission. The B3 disclosed the new procedure on May 7 as part of its efforts towards making the Brazilian capital markets more competitive.

Prior to that, companies that wanted to conduct offers below the mentioned trigger were potentially subject to the commission’s checking, a situation the market considered as a barrier to lower offers. With this change, the B3 makes it clear that the offer volume by itself does not justify the analysis. The Stock Exchange also adopted the possibility that the companies submit their analysis and migration request on a confidential basis with a view to preserving their strategies and waiting for the most appropriate moment to make them public.