Ultrapar Participacoes SA rose to a record after the Brazilian fuels and petrochemicals group said it plans to convert all its shares into voting stock.
Ultrapar advanced 1.4 percent to 28.02 reais in trading of 3.06 million shares at the close of Sao Paulo trading at 4:15 p.m. New York time. The three-month average volume is 929,200 shares. The Bovespa index rose 0.2 percent to 69,837.52.
The company said in a regulatory filing it wants to be listed in the so-called Novo Mercado, a section of the Sao Paulo exchange with stricter requirements for disclosure. Only voting shares can be traded there, according to the rules.
“It’s better to have only one class of shares,” Luiz Otavio Broad, an analyst at Agora Corretora, said in a telephone interview from Rio de Janeiro. “It gives the company more visibility, especially among foreign investors.”
Shareholders will receive one voting share for each preferred share after the company’s request to be listed in the Novo Mercado is approved by BMF&Bovespa, according to a filing.