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.
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