Smiles SA, Brazilian air carrier Gol Linhas Aereas Inteligentes SA’s mileage unit, rose in its Sao Paulo debut after an initial public offering.
Shares gained 6 percent to 23 reais at the close of trading in Sao Paulo, after rising as much as 11 percent to 24.10 reais from the 21.70 reais offering price. Gol slumped 3.7 percent to 12.86 reais after erasing an advance of as much as 2 percent. The Ibovespa equity benchmark rose 1.2 percent.
Smiles had estimated in a prospectus that shares would price within 20.70 reais to 25.80 reais. The company and its shareholders are raising as much as 1.13 billion reais ($560 million), according to data compiled by Bloomberg.
Smiles was the sixth IPO in Brazil this year and the third in a week, with Alupar Investimento SA raising 421 million reais and BB Seguridade Participacoes SA 8.5 billion reais. Gol has jumped 14 percent since Dec. 20 after saying it was separating Smiles and considering an IPO.