Breaking News

Tweet TWEET

Gol Rallies After Frequent-Flier Unit Files Request for an IPO

Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-biggest air carrier by market share, rose as its frequent-flier unit moved closer to an initial public offering.

Shares gained 3.1 percent to 12.51 reais at 12:23 p.m. in Sao Paulo, its highest price on a closing basis since Feb. 22. The stock was the second-biggest advancer on the Bovespa index, which rose 0.4 percent.

The Sao Paulo-based airline said in a regulatory filing after the market closed yesterday that its mileage unit, known as Smiles SA, filed a request with regulators to issue shares. The company didn’t give any more details on the offer.

“The IPO is very positive for both Gol and Smiles,” Felipe Silveira, an analyst at brokerage Coinvalores in Sao Paulo, said in a telephone interview today. “For Gol, it unlocks the value of an asset that was a little forgotten.”

The filing marks another step in an IPO process that started last year when Gol said Smiles would become an independent unit, Silveira said.

Gol has dropped 13 percent in the past year.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.