Why US investors are trading Afya directly without ADR fees
Brazilian medical education leader Afya surged 3.45% on Nasdaq, offering global retail investors a rare direct-listing route into Brazil.
American retail investors looking to diversify into foreign markets often face a hidden tax in their brokerage accounts: American Depositary Receipt (ADR) fees. These administrative fees, charged by custodian banks, quietly chip away at returns on popular international holdings. However, a select group of foreign companies bypasses this system entirely by listing their primary shares directly on US exchanges, allowing investors to trade them with the same ease and low cost as domestic tech giants.
One such company is Afya Limited, the leading medical education group in Brazil. On the Nasdaq, where its primary Class A shares are listed, the company’s stock price rose 3.45% to close at $10.50. Because Afya chose a direct US listing rather than an ADR program when it went public in 2019, investors can buy and sell its shares on major retail platforms without worrying about foreign custody fees or complex tax reconciliations.
Operating from its headquarters in Nova Lima, Brazil, Afya runs a highly specialized network of medical schools, residency prep courses, and digital health software. The company's business model relies on the highly defensive nature of medical education. In Brazil, becoming a physician is a highly coveted career path, ensuring that Afya’s undergraduate medical seats remain at 100% occupancy. This recurring tuition revenue insulated the company's core operations, which brought in 1.01 billion Brazilian reais ($183 million) in the first quarter of 2026, representing an 8.2% year-over-year increase.
The Yduqs Merger and the Path Ahead
The company is currently navigating a major corporate transition. In late September 2026, Afya entered into a definitive merger agreement with Yduqs Participações S.A., another major Brazilian education player. According to details shared during the company's Afya Day investor event on October 20, 2026, the combined entity would control an extensive network of 38,000 medical students and generate an estimated 10 billion reais in annual revenue.
However, this merger introduces a structural shift for US retail investors. Under the current terms of the agreement, Afya shareholders are slated to receive 6.408347 Yduqs shares per Afya share. Because Yduqs is listed on the Brazilian B3 exchange, the transaction would result in Afya delisting from the Nasdaq. The deal is currently undergoing regulatory review by Brazil's antitrust authority, CADE, with a decision expected between June and August.
Until the merger is finalized, Afya continues to trade normally on the Nasdaq. The company is scheduled to report its third-quarter and nine-month 2026 financial results on November 12, 2026, which will provide investors with the latest operational data on its medical seat yield and digital services expansion.
In your brokerage app
You can trade Afya Limited directly under its ticker on the Nasdaq. Because it is a primary US listing and not an ADR, you can buy and sell it through standard brokerage accounts at Fidelity, Charles Schwab, or Robinhood without incurring foreign depository fees.
