Will the dual listing lead to arbitrage opportunities between the NYSE and Brazilian exchange? | EVEX (Aug 14, 2025) | Candlesense

Will the dual listing lead to arbitrage opportunities between the NYSE and Brazilian exchange?

Yes – the dual‑listing creates a classic cross‑market arbitrage set‑up, but the size and speed of any exploitable price gap will be dictated by liquidity, settlement timing and the relative depth of the two venues.

Eve Air Mobility’s shares will trade on the NY NYSE (EVEX/EVEXW) and on B3 in Brazil under the same capital‑raise structure. The NY exchange is far deeper, with a larger pool of institutional and retail participants, tighter spreads and continuous electronic market‑making. B3, while growing, still has a more limited order‑book and a T+2 settlement clock that can differ from the NY T+2/T+0 clearing for the ADR‑type securities. In practice, a price differential will appear whenever the NY price moves faster than the Brazilian price (or vice‑versa) – for example, after a U.S.‑centric news flow on eVTOL policy, FAA approvals, or a U.S.‑based capital‑raise tranche.

Trading implication: If you spot a divergence that exceeds the combined transaction‑costs (exchange fees, FX spread, borrowing/short‑selling costs, and any cross‑border tax), a relative‑value trade can be placed – long the cheaper side (e.g., buy on B3) and short the expensive side (sell EVEX on NY). Because the two markets clear in different currencies (USD vs. BRL), the arbitrage also carries a currency‑carry component; a hedged FX position (e.g., using forward contracts) is essential to isolate the equity spread. Expect the window to be short‑lived – price convergence typically occurs within a few hours as market‑makers rebalance inventories and algorithmic traders scan for the spread.

Actionable tip: Monitor the real‑time NYSE price and the B3 quoted price (or its ADR equivalent) for any > 0.5 % differential after accounting for the prevailing USD/BRL rate and total execution costs. When the gap widens, initiate a market‑neutral pair trade with a tight stop (e.g., 0.2 % of the spread) and a modest position size (≤ 5 % of daily volume on the thinner B3 side) to avoid slippage. In the absence of a sustained gap, the arbitrage will be quickly erased by liquidity‑providing participants.

Other Questions About This News

How will the capital raise impact the company's runway to commercial launch and revenue timeline? How will the $230 million equity capital raise affect the company's balance sheet and cash flow outlook? What is the expected dilution impact on existing shareholders and EPS? How does the dual listing in the United States and Brazil influence liquidity and trading volume for EVEX? How does the valuation implied by the raise compare to peer UAM/EVTOL companies such as Joby, Archer, and Lilium? What regulatory approvals are required for the dual listing and could they cause delays? What are the intended uses of the $230 million—R&D, production scaling, certification, or debt repayment? Will the capital raise affect the company's ability to secure additional government or private contracts? What impact will the dual listing have on the company's cost of capital and access to capital markets in the future? How does this capital raise compare to previous fundraising rounds in terms of size, pricing, and investor composition? What pricing and allocation strategy is being used for the equity raise (e.g., price range, over‑allotment option)? What is the market's reaction (premarket, after‑hours) to the announcement and is there a risk of short‑term volatility? How does the fundraising affect the company's valuation multiples (P/E, EV/EBITDA) relative to peers? Are there any covenants or restrictions attached to the new equity that could affect future financing or strategic decisions?