Americanas ( AMER3 ) is considering a reverse split into multiple retail operations

Americanas (AMER3) told B3 in a statement to the market last Wednesday night (25) that there are a number of measures on the radar that could boost the share price to levels equal to or greater than R $1. However, if not enough to increase the asset price, the company may offer a reverse split.

The announcement came after B3’s letter was called into question as the retailer’s shares, which have been in court since January, have traded below R$1 for more than two months. Yesterday, the shares closed at 0.76 reais.

B3 has a rule that does not allow a share to trade below R$1 for more than thirty days in order to prevent the existence of so-called “penny stocks” that end up having a lot of volatility due to their low value. For those who do not comply, there is a risk of suspension from the stock exchange.

The company said the procedures for auditing the financial statements for the financial years 2022 and 2021 and negotiations with creditors on the final version of its plan are being completed, so it is preparing to publish them soon.

The company said that depending on the completion of events, there is a possibility that the stock will trade above R$1 again.

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“However, if the share price does not return to this level, the company is considering the possibility of proposing to the Board of Directors at the appropriate time to send the company’s shareholders a proposal for a reverse split of its shares, the decision of which will be taken at the General Meeting,” he told The Americans.

The retailer received a letter from B3 informing it that, as stipulated in Article 46 of the Issuer Regulation, the company’s share price must maintain a value equal to or greater than 1.00 reais in order for them to continue trading on B3. Among the measures the letter requires is disclosure of the letter received, as well as the procedures and timetable that will be taken to remedy the situation.

Periodic groups in the sector

The reverse stock-splitting measure has been the choice of other retailers recently amid sharp falls in many stocks in the sector.

The Casas Bahia group (BHIA3) proposed the merger to the board yesterday (25) by a 25-to-1 margin, while Marisa (AMAR3) approved the measure by a 5-to-1 margin in September.

AMAR3 shares, by the way, started trading in groups of 25. The day before, in the first session after the grouping, the asset fell by 12.83%, which is an indicator that entering the stock that passed the grouping could be a bad deal for the investor.

“Usually companies that trade below R$1 face financial difficulties,” he stressed InfoMoney Gabriel Duarte, an analyst at Ticker Research, analyzes the growth of this type of transaction in B3 this year.

“Many investors think that this is a buying opportunity, because this company was worth more in the past, it should be worth the same in the future. The problem is that this is not always true. There are reasons that led these companies to such a devaluation. In some cases, the drop exceeds 90%. Investors should be aware of such problems,” he added.

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