Azul IPO Raises $2 Billion

Brazilian Airline Azul held its Initial Public Offering on April 10th at Bovespa (the Sao Paulo stock exchange). The stocks received the price of R$21  each with the company raising $2 billion, distributed across 96.2 million shares of primary offers (new shares) and secondary (of ownership of partners of the company).

In the primary offering, 63 million of shares were sold, generating 1.323 billion reais, while the secondary moved 33,239,837 shares, with 698 million reais.

According to Reuters,  demand from investors was five times greater than the value offered, while the price of $21 reais stayed within the estimated range of $19 to $23 reais. Additionally, 70% of the papers were sold through New York, while the rest were sold through Sao Paulo.

This is the third IPO in 2017 in Brazil. Apart from Azul, the car rental company Movida raised 600 million reais and the Hermes Pardini medical laboratory raised 877 million reais, both in February. Combined, the three companies moved 3.49 billion reais in 2017.

Itaú BBA, Citi, Deutsche Bank, BB Banco de Investimento, Bradesco BBI, Santander Brasil e J.P. Morgan are coordinating the operation, with Saleb II Founder 13, Star Sabia, WP-New Air, Azul Holding, ZDBR, Bozano, Maracatu, Morris Azul, Trip e Rio Novo Locações selling the stocks.

C.S.