shareholders approve splitting shares in the ratio of 1 to 2

shareholders approve splitting shares in the ratio of 1 to 2
shareholders approve splitting shares in the ratio of 1 to 2
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The shareholders of Banco do Brasil (BBAS3) approved the split of the financial institution’s shares in the proportion of 1 to 2 at an Extraordinary General Meeting (AGE) held this Friday (2).

The split will be replicated in the bank’s American Depositary Receipts (ADRs), traded on the United States over-the-counter market.

The Board of Directors of the state bank had forwarded the split proposal to the EGM on December 8 last year.

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On the occasion, Geovanne Tobias, vice-president of financial management and investor relations at Banco do Brasil, said that the intention with the measure was to democratize access to the bank’s shares for investors, especially individuals. In 2023, shares rose 76%.

At the AGE, the amendment to the bank’s bylaws was also approved to: (i) align it with the Novo Mercado Regulation, (ii) better regulate the multiple voting process and (iii) reflect the new basic organization of the Presidency’s bodies of the Republic and Ministries and the link between indirect federal public administration entities.

What is a stock split?

In a split or split, the company increases the number of shares in circulation, without increasing its share capital.

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Thus, the company increases the liquidity of its assets, making shares “more accessible” for small investors.

Remembering that it is possible to acquire shares in fractions, which also reduces the cost of acquiring shares.

Furthermore, it is important to highlight that this operation does not change the values ​​in the portfolio of investors who already invest in Banco do Brasil.

The article is in Portuguese

Brazil

Tags: shareholders approve splitting shares ratio

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