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Oi (OIBR3) collapses 10% after proposed reverse stock split; investor will be harmed?

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OIBR3 drops 10% after proposed reverse stock split (Image: Money Times/Renan Dantas)

The papers of Hey 🇧🇷OIBR3🇧🇷 OIBR4) retreated in the trading session this Friday (2), after the company approved the proposed reverse stock split. Around 11:15 am, OIBR3 fell 10%, worth R$ 0.18, while OIBR4 devalued 3.85%, to R$ 0.50.

According to Gabriel Gracia, an analyst at Investment Guidethe grouping is the main driver of today’s drop, mainly because it signals pessimism in relation to the company’s shares.

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In his analysis, Oi’s assets will not exceed the R$ 1 mark in the short term, meeting the requirement of B3which will reduce the stock’s liquidity.

Oi’s assets will be grouped in a 10:1 ratio, so that each lot of 10 shares of each type of the company will be grouped into a single share of the same type. The objective is to frame the quote at an amount equal to or greater than BRL 1.00, as required by the B3 regulation.

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According to the company, the adjustment will be made between December 2, 2022 and January 6, 2023, with the first trading session trading the grouped shares in the new proportion on January 9, 2023.

Despite the pessimism of the market, the recommendation of the Genial Investimentos is to maintain the position in OIBR3.

Source: Moneytimes

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