Oct. 9 (Bloomberg) -- Gol Linhas Aereas Inteligentes SA, Brazil’s second-largest air carrier, climbed the most in a month after selling more shares than planned in a public offering.

“The company is raising resources and will reduce its net debt,” said Januario Hostin Jr., who oversees 60 million reais ($34.5 million) as chief equity portfolio manager at Leme Investimentos in Florianopolis, Brazil.

The Sao Paulo-based airline and its controlling shareholder sold 38 million preferred shares, with an underwriter option for the purchase of up to 5.2 million additional shares, Gol said in a press release today. The company also sold 19 million common shares, which aren’t traded, according to data posted on the Web site of Brazil’s securities regulator yesterday evening. The stock was sold for 16.50 reais each, indicating a total value of about 1 billion reais if all 62.2 million shares are sold.

The preferred share offer was increased from a planned 34.6 million, Gol said. The company said it expects net proceeds of $346.6 million from the sale, which will be used to “strengthen its cash position and balance sheet,” the statement said.

Gol rose 3.5 percent to 17.65 reais in Sao Paulo trading as of 4:02 p.m. New York time, the biggest advance since Sept. 1. The Bovespa index gained 0.5 percent.

Hostin said the shares gained today also because Gol’s controlling shareholder, ASAS Investment Fund, will use all of the proceeds from the sale of preferred shares to buy the newly issued common stock.

“That means the fund was not getting rid of the shares, it was simply exchanging” papers, Hostin Jr. said in a phone interview.

Gol is the fourth company to sell shares in Brazil this month. The Bovespa index has jumped 71 percent this year to the highest level since June 2008 as record-low interest rates, rebounding commodity prices and rising consumer demand pull the economy out of its first recession since 2003.

To contact the reporter on this story: Fabiola Moura in New York at fdemoura@bloomberg.net

Last Updated: October 9, 2009 16:08 EDT