Mexico's Volaris Falls on Planned Shareholder Secondary Offering

  • Airlines' shares post biggest decline since February 2014
  • Company's stockholders plan to offer 90 million ADSs

Controladora Vuela Compania de Aviacion SAB tumbled the most in 20 months after saying some of its investors, including units of Discovery Americas and Blue Sky Investments, plan to sell shares in a secondary offering.

The Mexican airline, known as Volaris, declined as much as 7.1 percent, the biggest drop since Feb. 26, 2014. Shares fell 6.3 percent to 27.4 pesos at 9:35 a.m. in Mexico City. Mexico’s benchmark IPC index lost 1.8 percent.

Shares in Mexico’s second-largest carrier by passengers are declining after reaching an all-time high last month when the Mexico City-based Volaris announced net income that beat analysts estimates for a sixth straight quarter. The company said in statement Monday to the stock exchange that no new equity would be offered by the company. The proposed transaction will involve the sale of 90 million American Depositary Shares.

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