Lojas Americanas Shares Rise on First Day Outside Ibovespa

Lojas Americanas shares rally in first day of new listing outside major indexes

Despite a major corporate scandal that saw the resignation of their board of directors, Lojas Americanas shares gained 12.86% on their first day of trading outside major indexes on the Sao Paulo stock market.

Ordinary shares of the Brazilian retail giant remain below one dollar per share, closing Monday at 0.80 reais (about 16 cents of the dollar).

The company, with debts worth approximately 43,000 million reais (about 8,250 million dollars), filed for judicial recovery before the Rio de Janeiro Justice, which was granted.

Three billionaire owners of G3, a group that controls 30% of the company, declared they had “no knowledge or would admit “fiscal maneuvers in the company” on Sunday.

The multinational Price Waterhouse Coopers revealed their audit found “accounting information” with other independent sources of the company, and that there were no irregularities.

Since the discovery of the accounting hole, the value of Lojas Americanas has plummeted with negative impacts on the price of creditor sectors such as the banking sector, public and private.

The stock market then decided to withdraw the company’s papers from the market since last Friday.

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