Copel Moves to Simplify Its Shares and Attract More Investors

Copel, a large Brazilian energy company, plans to change how its shares work to make the company more attractive to investors. On June 23, 2025, Copel’s board approved a proposal to join Novo Mercado, a special section of Brazil’s main stock exchange.

Novo Mercado is known for its strict rules about how companies must treat their investors and run their business. Right now, Copel has two types of shares: preferred shares and common shares.

Preferred shares used to get bigger dividends, but they had no voting rights. Common shares had voting rights but usually lower dividends. This setup made things complicated for investors and limited who wanted to buy Copel’s shares.

Copel’s plan is to convert all preferred shares into common shares. Each preferred share will turn into one common share and a new type of share called PNC. Copel will then buy back all PNC shares for R$0.7749 each.

After this, Copel will only have common shares, and every shareholder will have the same voting rights. This change should make Copel’s shares easier to buy and sell. It will also make the company’s management more transparent.

Copel hopes this will attract more foreign and institutional investors who look for companies with clear rules and equal rights for all shareholders. Copel’s financial situation is strong.

In early 2025, it reported R$1.5 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA). The company paid out over R$1.25 billion in dividends and kept its debt at a healthy level compared to its earnings.

Copel also runs a large network, with more than 6,500 megawatts of power capacity and nearly 10,000 kilometers of transmission lines, serving over five million customers. The company’s management says this move will not reduce any shareholder’s ownership percentage.

Some preferred shareholders may want a higher payout for losing their dividend advantage, but Copel believes the offer is fair. The State of Paraná will keep a “golden share” to protect public interests.

If shareholders approve the plan in August, Copel expects to finish the process by the end of 2025. This change should help Copel become a more modern, competitive, and open company, making it easier for investors to understand and trust its business.

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