Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Multiplus Drops in Sao Paulo After Filing to Sell New Shares

Don't Miss Out —
Follow us on:

March 8 (Bloomberg) -- Multiplus SA, the frequent-flier unit of Latam Airlines Group SA’s Brazil subsidiary, sank the most in a month after filing to sell new shares.

Multiplus plunged 7.8 percent to 30.72 reais at the close of trading in Sao Paulo, the most since Feb. 8. The shares tumbled as much as 17 percent earlier, on trading volume that soared to 18 times the three-month daily average, according to data compiled by Bloomberg. It was the second-worst performer on the MSCI Emerging Markets Index, which rose 0.8 percent.

Sao Paulo-based Multiplus, which has a market capitalization of 4.98 billion reais ($2.56 billion) and a free float of 65 percent, filed a preliminary request to issue new shares with Brazilian regulators. The company may raise 800 million reais in the offering, according to the filing.

“That’s a natural reaction to an offering, the stock tends to drop,” Aloisio Lemos, a Rio de Janeiro-based analyst at brokerage Agora CTVM SA, said in a telephone interview. “But in this case, 800 million is a big operation. That’s why it’s falling so much.”

Multiplus has dropped 16 percent in the past year, while Brazil’s benchmark Bovespa index ha lost 13 percent.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.