Sabesp (SBSP3) announced on Monday that it will submit a proposal for a 1-for-5 stock split for shareholder approval at an extraordinary general meeting scheduled for Tuesday. If the proposal passes, each current common share will be converted into five shares, with no change to the company’s total capital stock.
Shares traded on B3 will have a record date of April 28, 2026. Investors who hold shares on that date will be entitled to the split. Starting April 29, the shares will begin trading on an ex-split basis.
The new shares are scheduled to be credited on April 30 and will appear in investor positions at the market open on May 4.
For Sabesp’s American Depositary Receipts (ADRs), which trade on the New York Stock Exchange, the ratio between ADR and common share will stay at 1-for-1. Investors will receive four additional ADRs for each existing ADR they hold. The entitlement to the new ADRs will be determined on April 30, with distribution expected on May 6. The depositary bank, The Bank of New York Mellon, will manage the distribution. Ex-split trading for the ADRs will begin on May 7.
During the period from April 30 through May 7, the depositary bank’s records will be closed for issuance and cancellation operations between the Brazilian and U.S. markets. During that time, both the common shares and the ADRs will continue to trade normally in their respective markets.
The new shares and ADRs will carry the same rights as the existing securities, including participation in dividends, interest on equity, and any other distributions that may be declared.
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