Oi to delist American Depository Receipts from NYSE

4 Oct 2021

Brazilian telco Oi has confirmed that its Board of Directors approved the company’s intention to delist its Common American Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE) in a vote held on 30 September. However, the telco says it will maintain a Level 1 ADR programme for its Common ADRs to trade over-the-counter (OTC) in the US, together with its Preferred ADRs, which currently trade OTC. Once the company meets the relevant criteria it says it will terminate its registration with the US Securities and Exchange Commission (SEC).

(Note: each ADR represents five common shares. OTC trading is done directly between two parties, without the supervision of an exchange.)

Oi explains: ‘The company listed its Common ADRs on the NYSE mainly to promote trading in its shares and to raise the company’s visibility in the United States. The company now finds that the economic rationale for maintaining a listing on the NYSE has declined in recent years due in part to increases in trading volume of Brazilian stocks in Brazil by overseas investors due to the internationalisation of the Brazilian financial and capital markets, as well as the narrowing of the gap between US and Brazilian disclosure standards with respect to financial reporting.’

Brazil, Oi