Nearly 87% of Assas stock trading occurs in Brazil.
This leaves little reason to maintain its secondary listing on the New York Stock Exchange (NYSE).On December 19, 2024, the Brazilian retail giant announced its decision to delist its American Depositary Shares (ADSs) from the NYSE, with the process set to conclude by January 9, 2025.This move reflects Assas focus on cost efficiency and its commitment to prioritizing its home market.
Each Assa ADS, representing five ordinary shares, has been traded on the NYSE since February 2021, following a corporate split from Grupo Po de Acar (GPA).However, with most trading concentrated on Brazils Novo Mercado segment of B3, the company sees little value in maintaining a U.S.
listing.By shifting its ADS program to Level 1, Assa will allow investors to trade these shares over-the-counter while also canceling its registration with the U.S.
Securities and Exchange Commission (SEC).Assa Steps Away from Wall Street to Refocus on Brazil.
(Photo Internet reproduction)This decision comes at a challenging time for Assa.
Its shares have fallen 59% on B3 this year, reflecting broader economic pressures like rising interest rates and inflation concerns.Despite this, analysts like BB Investimentos remain optimistic, projecting a potential 118% upside for Assas shares by late 2025.
Assa is also scaling back its expansion plans, aiming for 15 new stores in 2024 compared to 30 in 2023.This cautious approach aligns with its strategy to reduce debt and focus on operational efficiency.
By year-end 2024, the company expects its net debt-to-EBITDA ratio to drop below 3.2x.For investors and stakeholders, this shift signals a pragmatic recalibration.
By consolidating resources and focusing on Brazils market, Assa aims to strengthen its position in an increasingly competitive retail landscape.