Book Entry Shares
To ensure that Petrobras’s shareholders receive the dividends to which they are entitled, it is essential that personal data be maintained current, communicating any change in address or banking account for the purpose of crediting dividends. This updating should be made at any Banco Bradesco branch (the financial institution that manages book entry shares issued by Petrobras).
Petrobras’s capital stock is R$ 205,431,960,490.52, represented by 13,044,496,930 shares with no par value, being 7,442,454,142 common (57.1%) and 5,602,042,788 preferred (42.9%) shares. Check out updated information.
Reverse Share Split
The Extraordinary General Shareholders’ Meeting held May 23, 2000 approved the reverse split of the shares representing the Capital Stock in the proportion of 100 shares for 1 new share. As from the latter date, Petrobras’s shares have been traded on a per unit basis and no longer in 1,000 share blocks.
The Extraordinary General Assembly, held on July 22 2005, deliberated on and approved the 300% split of the shares that represent the Company’s corporation capital. This resulted in the free distribution of 3 (three) new shares of the same type for every share based on the shareholding position on August 31 2005. Consequently, the share’s market value was divided by 4 as of 09/01/2005.
The Extraordinary General Meeting held on 03/24/08 deliberated on and approved a new 100% share split for the Company’s stock. This entails a free distribution of 1 (one) new share for each share the investor holds of the class, considering the shareholding position on 04/25/08. Therefore, on 04/28/08, share unit quotes were divided by 2 simultaneously with the doubling of the shareholding position and, thus, the shareholders will suffer no financial loss.
The split’s objective was to make it easier for small and medium investors to purchase Petrobras shares and, thus, increase the company’s stockholder base. It also shows the Company’s confidence in its future results and in the Brazilian capital market perspectives.
As of 09/01/2005, the ratio between the American Depositary Receipts (ADR) and the corresponding shares of each type was changed from one share to four shares for one ADR. Since 07/02/2007, because of the share split that was made solely for the American capitals market, the ratio between the ADRs and the stock traded at the São Paulo Stock Exchange became 1 ADR equivalent to 2 shares in the Brazilian market.
Share Negotiation (Brazil)
Petrobras shares are negotiated mainly on the São Paulo Stock Exchange where the common stock is symbolized by PETR 3 and the preferred by PETR 4.
ADR – Preferred Shares
In October 1996 a sponsored program of American Depositary Receipts – ADR, level 1, of Petrobras preferred shares was launched. This Program had the Brazilian Settlement and Custody Company (CBLC) as Custody company in Brazil, while Citibank was the Depositary Bank abroad. Afterwards, in February 2001, this program moved to level 2 ADRs. This new program allows the preferred shares to be traded in the New York Stock Exchange. In July 2001, this program moved to level 3 ADRs. Since 07/02/2007 each ADR represents 2 preferred shares and is traded in NYSE under the symbol of PBRA. Since January 2020, the depository bank abroad has been JP Morgan Chase Bank.
ADR – Common Shares
The ADR level 3 Program of Petrobras´ common shares was launched in August 2000, with the Companhia Brasileira de Liquidação e Custódia (CBLC) as the custodian institution in Brazil and Citibank as the depositary bank abroad. Since 07/02/2007 each ADR is represented by two ordinary Petrobras shares and negotiated at the NYSE under the PBR acronym. Since January 2020, the depository bank abroad has been JP Morgan Chase Bank.
Bearer Bonds were instituted by art. 15 of Law Number 2.004/53, dated October 03 1953, and they resulted from the yearly compulsory contribution car owners had to pay from 1954 to 1957.
These bonds could have been converted into preferred shares issued by PETROBRAS, as long as the bond holders complied with the requirements of the Joint Stock Company Law and of art. 18 of Law Number 2.004/53.
In order to facilitate the conversion, from 1957 to 1963 Petrobras undertook public share subscriptions to increase its corporation capital. The service rendered to those interested in redeeming the bonds or in converting them into PETROBRAS shares was done throughout the Country through an extensive network of bank branches, an effort previously divulged by the Press.
It so happens, however, that the Bond values, printed in “cruzeiros antigos” (“old Cruzeiros”) (currency in effect at the time) could not be corrected since these titles had been issued between 1956 and 1959, and monetary correction was only instituted in the Country in 1964, therefore, the bonds had no representativeness in the current exchange.
Furthermore, more than 20 (twenty) years later, bond holders who had not manifested themselves in the due period of time could no longer request to receive the redemption value or request conversion since this right was not exercised in the period provided for by law or in the conditions mentioned on the back of the bonds themselves, which caused the bonds to expire.
We must emphasize, finally, that the Republic Presidency’s Citizen Right Defense Commission (Comissão de Defesa dos Direitos do Cidadão, CODICI), in a decision made on 07.20.88, in suit Number 3.337-5/87, concluded no rights had been violated by bond prescription or under art. 18 of Law Number 2.004/53