The Unit was created in 1997, and it is a Certificate of Deposit of Stocks that represents one preferred share (PN) issued by Unibanco (UBBR4) and one preferred share issued by Unibanco Holdings (UBHD6). The Units are traded at both São Paulo and New York Stock Exchanges (under the form of GDSs). The Unit ticker at the São Paulo Stock Exchange is UBBR11.
Where is it traded?
Units are traded in much the same way as other listed shares. In May, 2005, they were included in the Ibovespa (Bovespa Index), the most significant performance indicator of the Brazilian stock market.
Liquidity and volume of trading
They are currently Unibanco's most liquid security. In May, 2004, Ágora Senior was contracted to act as Units' market maker at Bovespa. The market maker, or Formador de Mercado in Portuguese, is an independent securities brokerage house that, on a daily and regular basis, places Units bids and offers throughout all Bovespa's trading sessions.
Unibanco and Unibanco Holdings started their GDSs program (Global Depositary Shares) in May, 1997, through the listing of a Level III ADR (American Depositary Receipts) program at the NYSE (New York Stock Exchange). In view of the global offering completion which launched the program, Unibanco became the first Brazilian bank with shares listed on that Stock Exchange.
How many Units are equivalent to one GDS?
Each GDS is currently equivalent to 10 Units traded at Bovespa (São Paulo Stock Exchange), and it is traded under the ticker "UBB".
What is a level III ADR?
The Level III ADR programs must comply with the registration and disclosure requirements set by the U.S. Securities and Exchange Commission (SEC). Those include the preparation of the Form 20-F, which comprises accounting statements that meet the US GAAP - the American accounting standard.
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