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PagSeguro is the first Brazilian listed in New York to trade in Brazil

The company announced that it will trade BDRs (Brazilian Depositary Receipts) at B3; BDRs can be traded in BRL, according to exchange rate fluctuations

PagBank, the digital account of PagSeguro, brand.
Photo: Screenshot.
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  • BDRs (Brazilian Depositary Receipts) are deposit certificates of securities traded in the B3 issued by a listed company headquartered overseas;
  • PagSeguro’s BDR is of unsponsored kind, that is, it is not an offer from the company, but from the bank – in this case, the initiative came from B3;
  • Trading of Brazilian companies listed abroad on B3 was recently authorized in 2020.

PagSeguro PagBank, Brazilian UOL’s financial services provider, announced that it will trade BDRs (stock receipts) on the Brazilian stock market via B3. This makes the company the first Brazilian company listed on the New York stock market to be traded in Brazil as well.

Trading of Brazilian companies listed abroad on B3 was recently authorized by the Securities and Exchange Commission in 2020.

At B3, BDRs can be traded in BRL, according to exchange rate fluctuations. The initial price of the PagSeguro’s BDRs is about BRL 50.00 and shares are already available to Brazilian investors on Monday 1st.

READ ALSO: Brazilian PagSeguro PagBank reports BRL 2,1 billion in revenue in 2020’s Q4

BDRs (Brazilian Depositary Receipts) are deposit certificates of securities traded in the B3 issued by a listed company headquartered overseas. BDRs can be issued either by banks or by agents or by the companies themselves.

PagSeguro‘s BDR is of unsponsored kind, that is, it is not an offer from the company, but from the bank that buys the shares in the United States and then trades in Brazil. In this case, the initiative came from B3, the company that manages the São Paulo stock market.

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Publicly traded on the New York stock market since 2018, PagSeguro PagBank reported that since its initial public offering (IPO) the company’s shares have appreciated more than 140% in dollars.

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