Gol's Smiles raises R$1b from IPO

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Brazilian low-cost carrier Gol has raised one billion Brazilian reals ($499 million) from an initial public offering of its Smiles loyalty programme.

More than 46,300,000 shares were issued, priced at R$21.70 per share, says Gol.

Smiles pocketed R$954 million in proceeds after commissions and expenses were deducted. The funds will be used by Smiles for the advance purchase of airline tickets from Gol's subsidiary VRG Linhas Aereas at a discounted rate.

Smiles was acquired by Gol as part of its purchase of VRG in 2007. VRG was subsequently merged with Gol.

Earlier this month, Gol entered into an agreement with private equity firm General Atlantic for a R$400 million investment in Smiles through the purchase of shares in the IPO.