By Brazil Stock Guide – Brava Energia S.A. (B3: BRAV3), created in 2024 from the merger of Enauta Participações and 3R Petroleum, said its board approved the launch of a sponsored Level 1 American Depositary Receipts (ADR) program with JPMorgan Chase Bank N.A. acting as depositary. The plan is subject to approval by the US Securities and Exchange Commission (SEC).
The program will be backed by Brava’s common shares and traded on the US over-the-counter (OTC) market. The company said the move aims to boost stock liquidity, increase international visibility, and open a direct channel for global investors.
“The ADR reinforces our strategy to broaden the shareholder base and diversify access to capital,” the board said in a filing.
What’s at stake
Brava emerged in 2024 as one of Brazil’s largest independent oil and gas producers, combining Enauta’s offshore assets with 3R’s onshore fields. The merger gave the company scale and positioned it to compete with international peers. The company’s stock has averaged a daily liquidity of around R$ 110 million (US$ 21 million) on the B3 over the past month.
Launching Level 1 ADRs marks an initial step toward expanding access to US capital markets. While the entry-level program limits trading to OTC venues, it establishes formal presence in the United States and could pave the way for future listings on the NYSE or Nasdaq.
Debt reduction and outlook
Brava Energy had its price target cut to R$27 from R$28 by BTG Pactual in a Sept. 12 note, though analysts maintained a Buy rating. The bank highlighted progress in receivables anticipation, refinancing and prepayments, which accelerated deleveraging. BTG expects leverage to fall further over the next two quarters, while cautioning that the investment case remains sensitive to short-term oil price swings, despite an active hedging program.
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