Banco Inter’s BDRs (INBR31) debut on the stock market this Monday

Banco Inter’s shares (BIDI3, BIDI4 and BIDI11) had their last trading day on Friday (17), in the midst of its corporate reorganization process, with the transfer of assets to Nasdaq this week. BIDI11 assets closed their last trading session on Friday with a drop of 1.42%, accumulating a decrease of 63.60% in the year. The sale of shares/units issued by Inter by the shareholders on Friday will be settled next Tuesday (21).

This Monday, Inter & Co’s BDRs (Brazilian Depositary Receipts) will begin trading on B3 with the ticker INBR31. The day began with a decline for assets: at 10:21 am (Brasília time), INDBR31 shares were down 1.35%, at R$ 20.52.

As of the 22nd, the BDRs will appear in the statements of Inter shareholders who have not sold shares in the bank that they held on the 17th.

The bank explained in a statement that as of June 22, 2022, shareholders who have received BDRs may, at any time, request the conversion of the BDRs they hold into Class A Shares issued by Inter & Co (INTR) in the US. This is done by instructing its custodian institution to request Banco Bradesco, the depositary institution of Inter’s BDR program, for the respective conversion.

The shareholder must have a valid account with a brokerage firm in the United States, to which the Class A Shares underlying the dismantled BDRs will be allocated.

To receive INTR on June 23, when the first trade will take place on Nasdaq, the shareholder must apply to their broker or custodian. The custodian must register the request at B3 by the 22nd, at 1:00 pm (Brasília time).

Below is the schedule for the migration to Nasdaq:

Inter defined the final amount of BRL 39.18 per share to be paid to shareholders who opt for cash-out — leaving the company’s base in exchange for a cash amount.

The value considers the price of R$ 38.70, corresponding to the economic value per preferred or common share issued by the bank, established under the terms of the Cash-Out Report and is updated according to the variation of the DI rate calculated between the date of the meeting General Meeting (AGE) on the restructuring — May 12, 2022 — and the date of the effective payment of the redemption, on June 20.

According to the company, in the first 30 days of trading the BDRs on B3, shareholders will have coverage of their fees referring to the conversion into Inter&Co shares on Nasdaq. If they choose to keep the BDRs, Inter informed that it will not be necessary for the shareholder to do anything to receive them. The BDRs would already be automatically deposited into the shareholder’s account at the brokerage firm.

In May (between the 13th and 20th), the Bank offered two alternatives: the option of receiving Level 1 BDRs backed by Inter&co’s Class A Shares or the Cash-out option, in which it was possible to receive the amount highlighted above for each 6 shares of Banco Inter. In that event, these 6 shares would entitle you to one Cash Redeemable Preferred Share of HoldFin.

For those who opted to receive BDRs, the amount will change proportionally to the amount previously held. For every 6 or more common or preferred shares (BIDI3 OR BIDI4), one BDR will be delivered. In the case of Units, BIDI11, each two entitles them to one BDR (one BIDI11 corresponds to 0.5 BDR).

The plans for migration to the US were resumed and materialized after a failed attempt at the end of 2021. With the change, the expectation is for more visibility, access to a more diverse investor base and also an option as a capital increase keeping the structure under control.

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About Yadunandan Singh

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