By Brazil Stock Guide – PDG Realty (B3: PDGR3) approved a 200-to-1 reverse stock split to comply with B3’s minimum price rule requiring shares to trade above R$ 1.00. The measure, cleared at an extraordinary shareholders’ meeting held on October 13, does not alter the company’s total capital or the rights of existing shareholders.
The move seeks to consolidate the shareholder base and reduce the volatility associated with low-priced stocks. The company said it will issue a Notice to Shareholders outlining the schedule for position adjustments, including the record date and the auction of fractional shares generated by holdings not divisible by 200.
“The operation aims to meet B3’s listing requirements and facilitate trading of the shares within a price range consistent with market standards,” PDG said in a filing.
The reverse split comes as PDG continues a slow restructuring process after years of financial distress and debt renegotiations. While the transaction has no economic effect on investors’ holdings, it signals an effort to restore liquidity and investor confidence in the company’s stock.
Once Brazil’s largest homebuilder, PDG collapsed under the weight of its own expansion. After a decade-long boom fueled by acquisitions and a R$648 million IPO in 2007, the company overleveraged into a cooling housing market and entered judicial recovery in 2017 — one of the biggest in Brazil’s real-estate history, covering 512 subsidiaries and nearly R$8 billion in debt.