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);
  • Execution of a Public Tender Offer (PTO) at a fair price or agreement with the exit from Novo Mercado, with an acceptance quorum of more than 1/3 (one-third) of the holders who hold outstanding shares (free float), or a higher percentage stipulated in the bylaws;
  • The company also undertakes to maintain at least 20% of the shares in circulation (free float), with this percentage being able to be reduced to 15% of the capital stock, as long as the average daily financial trading volume of the Company’s shares remains the same or more than R$20.0 million, considering business carried out in the last 12 months;
  • Disclosure of annual corporate events calendar;
  • Simultaneous disclosure, in Portuguese and English, of material facts, information on dividends and earning releases;
  • Carrying out, within 5 business days after the release of quarterly results or financial statements, a public presentation (in person, via teleconference, videoconference or other means that allows remote participation) on the information disclosedy.

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