Since 2006, when it held its Initial Public Offering (IPO), Copasa has been listed in the Novo Mercado listing segment of B3 – Brasil, Bolsa, Balcão. The Novo Mercado rules impose additional requirements to those set forth by the Brazilian legislation in force, especially:
- The capital stock must comprise exclusively common shares;
- In case of sale of control, all shareholders are entitled to sell their shares at the same price (100% tag along);
- In case of exit from the Novo Mercado or cancellation of the contract with B3, the company must make a public tender offer to repurchase the shares of all shareholders for at least the economic value;
- The company has to maintain at least 25% of its capital stock as outstanding shares (free float);
- Disclosure of annual corporate events calendar;
- Simultaneous disclosure, in Portuguese and English, of material facts, information on dividends and earning releases;
- Monthly disclosure of trades made by senior management and controlling shareholders, involving securities issued by the Company.
In compliance with the listing rules of the Novo Mercado, the Company’s Bylaws establish that the Company, its shareholders, senior managers and members of the Fiscal Board, effective and alternate, agree to settle, through arbitration, before the Arbitration Chamber of the Market, as per its charter, any controversy that may arise between them, related to or arising from its condition as issuer, shareholder, manager, and members of the Board Council, especially arising from the provisions contained in Federal Law 6,385/1976 , Federal Law No. 6,404/1976, Copasa’s Bylaws, rules issued by the National Monetary Council, the Central Bank of Brazil and the Brazilian Securities and Exchange Commission, as well as other rules applicable to the operation of the capital market in general, in addition to those contained in the Novo Mercado Regulation, other regulations of B3 and the Novo Mercado Participation Agreement.
Click here to view the full version of the Novo Mercado Regulation